RBI imposes monetary penalty on Janseva Sahakari Bank Limited, Pune
Case Brief
The Reserve Bank of India imposed a monetary penalty on Janseva Sahakari Bank Limited, Pune by order dated June 23, 2021. RBI said the bank contravened its Know Your Customer (KYC) direction because it had not introduced a system of periodic review of risk categorization of accounts. After a notice, the bank’s reply, and oral submissions at the personal hearing, RBI concluded the charge was substantiated and warranted the penalty under the Banking Regulation Act, 1949.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 for contravention of RBI’s Know Your Customer (KYC) direction. The inspection report (financial position as on March 31, 2019) found that the bank had not introduced a system for periodic review of risk categorization of accounts, and the RBI concluded the non-compliance was substantiated after notice and hearing.
Severity Assessment
The action is a monetary penalty of ₹2 lakh, which falls in the lowest monetary band (≤ ₹5 lakh) and has no additional structural restriction.
The bank must absorb the penalty and ensure KYC compliance processes are strengthened, especially periodic review of customer risk categorization. There is no stated restriction on operations, but the finding signals regulatory scrutiny over its AML/KYC controls.
Published as Janseva Sahakari Bank Limited, Pune
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