Case Brief
What Happened
RBI, by an order dated June 27, 2024, imposed a monetary penalty of Rs 2.00 lakh on The National Co-operative Bank Ltd., Mumbai, Maharashtra for non-compliance with RBI directions on Know Your Customer (KYC). The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. Following a statutory inspection with reference to the bank’s financial position as on March 31, 2023, RBI issued a show-cause notice based on supervisory findings. After considering the bank’s reply and oral submissions, RBI found that the charge of allotting multiple UCICs to customers was sustained and imposed the penalty. RBI clarified that the action is based on regulatory compliance deficiencies and does not pronounce on the validity of customer transactions.