The Reserve Bank of India has imposed a monetary penalty of `5.00 lakh (Rupees Five Lakh only) on the Vyavasayik Evam Audyogik Sahakari Bank Maryadit, Morena (Madhya Pradesh), in exercise of the 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 directives/instructions/guidelines of the Reserve Bank of India on credit exposure ceiling, maximum limit on unsecured advances, Know Your Customer (KYC) / Anti Money Laundering(AML) and submission of compliance to RBI's inspection report.

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 the bank’s written reply, RBI came to the conclusion that the violation was substantiated and warranted imposition of penalty.

Ajit Prasad
Assistant General Manager

Press Release: 2012-2013/665