Case Brief
The Reserve Bank of India imposed a monetary penalty on The Kutch Mercantile Co-operative Bank Ltd., Rapar, Dist. Kutch (Gujarat), under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had violated operational instructions issued under Section 36(1), with high non-compliance with KYC norms and no system in place to detect suspicious transactions. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and that the penalty was warranted.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Rapar, Gujarat