Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹25,000 on Nagrik Sahakari Bank Maryadit, Vidisha (M.P.) by order dated September 16, 2022. The penalty was levied for contravention of RBI directions issued to urban co-operative banks on Know Your Customer (KYC), specifically for failure to carry out periodic updation of customer KYC. RBI said the action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after issuing a show-cause notice and considering the bank's replies and oral submissions.