The Reserve Bank of India has imposed a monetary penalty of `1.00 lakh (Rupees one Lakh only) on Bharathiya Sahakara Bank Niyamitha, Chamarajanagar, Karnataka, in exercise of powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) for violation of the Reserve Bank of India's instructions on Know Your Customer (KYC) guidelines contained in Circular UBD.PCB.Cir.30/09.161.00/2004-05 dated December 15, 2004.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and bank's reply as also personal submission in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of the penalty.

Ajit Prasad
Assistant General Manager

Press Release : 2012-2013/877