Case Brief
What Happened
By an order dated May 06, 2026, RBI imposed a monetary penalty of ₹40,000 on Youth Development Co-operative Bank Ltd., Kolhapur, Maharashtra. The penalty was levied after a statutory inspection and show-cause proceedings, and the sustained violation was that the bank activated certain inoperative accounts without obtaining KYC documents from customers, contrary to RBI directions on Inoperative Accounts / Unclaimed Deposits in Banks – Revised Instructions and Know Your Customer. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.