Case Brief
What Happened
RBI imposed a monetary penalty on The Pratap Co-operative Bank Ltd., Mumbai through an order dated October 17, 2022. The penalty was for non-compliance with certain provisions of the RBI (Know Your Customer) Direction, 2016. In its supervisory inspection, RBI found that the bank had failed to establish systems for periodic updation of KYC, periodic review of risk categorisation of accounts, and robust software to generate alerts for identifying and reporting suspicious transactions. After issuing a show-cause notice and considering the bank's response, RBI held the charge substantiated and imposed a penalty under the Banking Regulation Act, 1949.