Case Brief
RBI, by order dated September 06, 2021, imposed a monetary penalty of ₹2.00 lakh on Sarvodaya Co-operative Bank Ltd., Bhandup (W), Mumbai. The penalty was for contravention of RBI’s Know Your Customer (KYC) directions, specifically the bank’s failure to put in place a system for periodic review of risk categorization of accounts. RBI said the action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank’s reply to the show-cause notice and finding the non-compliance substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra