Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
26 Sept 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Balitikuri Cooperative Bank Ltd., Balitikuri, West Bengal, by order dated September 22, 2022. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI found that the bank had not undertaken periodic review of the risk categorisation of its customers, contrary to RBI’s KYC directions. RBI stated that the deficiency was in regulatory compliance and did not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after inspection found that Balitikuri Cooperative Bank Ltd. had not undertaken periodic review of risk categorisation of its customers, in contravention of RBI’s Know Your Customer (KYC) directions. RBI concluded the non-compliance was substantiated after considering the bank’s reply and additional submissions.
Operating Impact
The bank must bear the penalty and remain compliant with RBI’s KYC directions going forward, including periodic review of customer risk categorisation. The action does not impose a new operating restriction, but it signals heightened regulatory scrutiny over AML/KYC compliance.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 22 Sept 2022
- Effective From
- 22 Sept 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank