Case Brief
RBI imposed a monetary penalty of ₹2.00 lakh on The Akola District Central Co-operative Bank Limited, Akola, Maharashtra, for non-compliance with provisions of the RBI – Know Your Customer (KYC) Direction, 2016. The inspection found that the bank had failed to put in place a robust system for generating alerts as part of effective identification and monitoring of suspicious transactions. RBI issued a show-cause notice, considered the bank's replies and oral submissions, and concluded that the contravention was substantiated, leading to the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Akola, Maharashtra