Case Brief
What Happened
By an order dated April 11, 2023, RBI imposed a monetary penalty of Rs 23.23 lakh on The Karnataka State Co-operative Apex Bank Ltd., Bengaluru. RBI said the penalty followed a statutory inspection by NABARD and examination of the inspection report and related correspondence, which found non-compliance with RBI’s KYC Directions, 2016 and directions on membership of Credit Information Companies (CICs). The bank had not carried out customer risk categorization, had not used robust software for effective identification and reporting of suspicious transactions, and had not submitted data to all four CICs regularly at monthly or shorter intervals. RBI concluded the charges were substantiated and imposed the penalty under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.