RBI imposes monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Rajnandgaon (C.G.)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Rajnandgaon (C.G.) by order dated July 22, 2022. RBI said the bank had contravened provisions of the Banking Regulation Act, 1949 and RBI directions on KYC, based on inspection findings that it delayed submission of statutory/OSS returns to RBI and NABARD and had no system in place to identify suspicious transactions. After notice, replies, oral submissions and additional submissions, RBI concluded the non-compliance was substantiated and warranted the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act (AACS).