Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Vaidyanath Urban Co-operative Bank Ltd., Beed (Maharashtra), by order dated December 05, 2022. The penalty was for contravention/non-compliance with RBI directions issued to Urban Co-operative Banks on Know Your Customer (KYC), after inspection found that the bank had not updated KYC as required and had not conducted periodic review of the risk categorization of accounts. 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.