Case Brief
The Reserve Bank of India imposed a monetary penalty on The Harij Nagrik Sahakari Bank Ltd., Harij, Dist. Patan (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was based on inspection findings for the financial position as on 31.03.2015, which indicated violations of RBI operational instructions, RBI guidelines for gold loans with bullet repayment option, and KYC/AML requirements relating to allotment of Unique Customer Identification Codes (UCICs). RBI issued a show cause notice, considered the bank’s reply and personal submissions, and then concluded that the violations were substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Harij, Gujarat