Reserve Bank of India imposes monetary penalty on Maharashtra Nagari Sahakari Bank Maryadit, Latur

Case Brief

The Reserve Bank of India imposed a monetary penalty on Maharashtra Nagari Sahakari Bank Maryadit, Latur by order dated January 04, 2021. The penalty was for non-compliance with RBI directions on Know Your Customer (KYC), based on inspection findings for the bank's financial position as on March 31, 2019. RBI said the bank failed to adhere to the relevant directions, issued a show-cause notice, and after examining the reply, concluded that the contravention was substantiated and warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.