Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
25 Nov 2024
Case Brief
By an order dated November 14, 2024, RBI imposed a penalty of Rs 50,000 on Anandeshwari Nagrik Sahkari Bank Maryadit, Ujjain, Madhya Pradesh. The bank was found non-compliant with certain RBI Know Your Customer directions: it failed to risk-categorise some customers and did not review the risk categorisation of some accounts every six months. RBI took the action after a statutory inspection with reference to the bank’s financial position as on March 31, 2023, and after considering the bank’s reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection found the bank had not complied with certain Know Your Customer directions. The sustained charges included failure to carry out risk categorisation of certain customers and failure to review the risk categorisation of certain accounts once in six months. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty; the release does not impose any new operational restriction or withdrawal of licence. RBI noted that the penalty is without prejudice to any other action that may be initiated, so further supervisory action remains possible if non-compliance persists.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 14 Nov 2024
- Effective From
- 14 Nov 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank