RBI imposes penalty on The Nasik Merchants Co-operative Bank Ltd., Nashik

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Nasik Merchants Co-operative Bank Ltd., Nashik under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had violated its directives/guidelines/instructions on KYC norms, AML measures, CFT, and obligations under the Prevention of Money Laundering Act, during the tenure of the erstwhile Board of Directors. After a show-cause notice, and after considering the bank’s written and oral submissions, RBI concluded that the violations were substantiated and merited penalty.