RBI imposes monetary penalty on The Angul United Central Co-operative Bank Ltd., Odisha
Case Brief
By an order dated June 03, 2024, RBI imposed a monetary penalty on The Angul United Central Co-operative Bank Ltd., Odisha under the Banking Regulation Act, 1949. The penalty followed NABARD's statutory inspection and RBI's supervisory findings that the bank had not implemented a risk-based approach for periodic updation of KYC, contrary to the Master Direction on KYC Direction, 2016.
RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a statutory inspection by NABARD and follow-up supervisory proceedings. RBI concluded that the bank had failed to implement a system of risk-based approach for undertaking periodic updation of KYC, constituting non-compliance with the RBI Master Direction on 'Know Your Customer (KYC) Direction, 2016'.
Severity Assessment
This is a monetary penalty of Rs 1 lakh, which falls in the lowest monetary band and there is no separate operational restriction.
The bank must absorb the monetary penalty and continue complying with RBI's KYC requirements. The release does not state any operational restriction, but RBI notes that the penalty is without prejudice to any other action that may be taken in future.
Published as The Angul United Central Co-operative Bank Ltd.
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