The Reserve Bank of India, imposed a monetary penalty of Rs. 5.00 lakh (Rupees five lakh only) on The Siddhi Co-operative Bank Ltd., Ahmedabad. The penalty was imposed for violation of RBI instructions/directions on Know Your Customer (KYC) / Anti Money Laundering (AML) and for submitting improper compliance of the observations made in its last inspection report.

The Reserve Bank had issued a show cause notice to The Siddhi Co-operative Bank Ltd.  The bank submitted a written reply in response to the Show Cause notice and after considering facts of the case, the bank's reply and personal submissions in the matter, the Reserve Bank concluded that the violations were substantiated and warranted imposition of penalty.

The Reserve Bank has imposed the penalty in exercise of powers vested in it under the provisions of Section 47 A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS).

R.R. Sinha
Deputy General Manager

Press Release : 2010-2011/1497