Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Osmanabad Janata Sahakari Bank Ltd., Osmanabad, Maharashtra for contravention of and non-compliance with RBI directions to Urban Co-operative Banks on Know Your Customer (KYC). RBI said inspection findings showed the bank had not reviewed risk categorization of accounts and had not updated customer KYC as required by the prescribed periodicity. After issuing a show-cause notice and considering the bank’s replies and oral submissions, RBI concluded the violations were substantiated and warranted the penalty under the Banking Regulation Act, 1949.