Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 2.50 lakh on Smriti Nagrik Sahakari Bank Maryadit, Mandsaur (Madhya Pradesh), following a statutory inspection with reference to the bank’s financial position as of March 31, 2024. RBI said the bank failed to comply with certain directions on the Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) – A Graded Approach and on Know Your Customer (KYC), including the implementation of certain cyber security controls and periodic KYC updation for some customers. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.