Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹10 lakh on Tumkur Veerashaiva Cooperative Bank Ltd., Tumkur, Karnataka, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949. RBI said the bank violated instructions on limiting donations to 1% of the previous year’s profit and also breached KYC/AML customer due diligence requirements while opening accounts other than individuals. After a show cause notice and consideration of the bank’s written reply, RBI concluded that the violations were substantiated and merited penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- Co-operative bank
- Location
- Tumkur, Karnataka
- Order Date