Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Tumkur Grain Merchants Co-operative Bank Ltd., Tumkur, Karnataka, under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for violating RBI instructions/guidelines in its Master Circular on KYC/AML/CFT and banks’ obligations under PMLA, 2002. RBI had issued a show cause notice, received the bank’s written reply, and after examining the facts concluded that the violations were substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Tumkur, Karnataka
- Order Date