Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Mangal Co-operative Bank Limited, Mumbai, for non-compliance with RBI directions on Maintenance of Deposit Accounts and Know Your Customer (KYC). RBI said its inspection found the bank had not conducted annual reviews of inoperative accounts and had not periodically reviewed the risk categorisation 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 and oral submissions were considered.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra