Case Brief
What Happened
By an order dated July 11, 2024, RBI imposed a monetary penalty of ₹1.00 lakh on The Vaishali District Central Co-operative Bank Ltd., Bihar. The action followed a statutory inspection by NABARD with reference to the bank’s financial position as of March 31, 2023, and supervisory findings of non-compliance with RBI’s KYC directions. RBI found that the bank failed to put in place a system for periodic review of risk categorisation of accounts, warranting monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.