Case Brief
RBI imposed a monetary penalty of Rs 3 lakh on The Gadhinglaj Urban Co-operative Bank Ltd., Gadhinglaj, Maharashtra, by order dated September 14, 2023. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 for contravention of Section 26A read with Section 56 of the BR Act and RBI's Know Your Customer Directions. RBI's inspection found that the bank did not transfer eligible amounts to the Depositor Education and Awareness Fund and allotted multiple UCICs to customers. RBI stated that the penalty is based on deficiencies in regulatory compliance and does not pronounce upon the validity of any customer transaction or agreement.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Gadhinglaj, Maharashtra