Case Brief
By an order dated February 05, 2021, RBI imposed a monetary penalty of Rs 1.00 lakh on The Gondia District Central Co-operative Bank Limited, Gondia for non-compliance with certain directions contained in the Master Direction - Know Your Customer (KYC) Direction, 2016. RBI said the bank did not have a robust system for generating alerts and reporting suspicious transactions to FIU-Ind, as revealed during the statutory inspection with reference to the bank's financial position as on March 31, 2018. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI considered the bank's reply to a show-cause notice and concluded that the charge was substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Gondia, Maharashtra