Case Brief
The Reserve Bank of India imposed a monetary penalty on The Panihati Co-operative Bank Ltd., Dist-24 Parganas (N), West Bengal, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949. The penalty was for violation of directions contained in an order dated April 16, 2014 and for violation of instructions in the Master Circular on Know Your Customer Norms, Anti-Money Laundering Measures, Combating of Financing of Terrorism, and banks’ obligations under the Prevention of Money Laundering Act (PMLA), 2002 dated July 1, 2015. RBI issued a show-cause notice, reviewed the bank’s reply, and concluded that the violations were substantiated, warranting the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- West Bengal