Case Brief
The Reserve Bank of India levied a monetary penalty on Kaujalgi Urban Cooperative Credit Bank Ltd., Koujalgi, Karnataka 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 violated its instructions/guidelines on the Depositor Education and Awareness Fund Scheme, 2014, and also breached KYC/AML directives. The bank was issued a show-cause notice, sought extension of time twice, but did not submit compliance or request a personal hearing; RBI therefore held the violations substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Koujalgi, Karnataka