Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Shreeji Bhatia Cooperative Bank Ltd., Mumbai for non-compliance with specific directions issued under the Supervisory Action Framework and the RBI KYC Directions, 2016. RBI said the bank incurred capital expenditure without prior approval, contrary to SAF directions, and failed to conduct periodic review of the risk categorization of existing customers. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after the bank's reply to a show-cause notice was considered and the charges were found substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra