Case Brief
By an order dated November 05, 2018, RBI imposed a monetary penalty of ₹30 million on The Jammu and Kashmir Bank Ltd. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, for failure to comply with RBI directions on Income Recognition and Asset Classification (IRAC) norms and Know Your Customer / Anti-money Laundering (KYC/AML) norms. RBI clarified that the action is based on deficiencies in regulatory compliance and does not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 Cr
- Entity Type
- Bank
- Action Type
- Monetary penalty