RBI imposes monetary penalty on The Anand Mercantile Co-operative Bank Ltd., Anand, Gujarat

Case Brief

RBI imposed a monetary penalty of ₹2 lakh on The Anand Mercantile Co-operative Bank Ltd., Anand, Gujarat, after finding violations of RBI directions on managing outsourcing risk for co-operative banks and KYC compliance. The bank had outsourced its core internal audit function and failed to periodically review the risk categorisation of certain accounts. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.