Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
9 Jan 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on Belgaum District Revenue Employees’ Co-operative Bank Limited, Belgaum, Karnataka, by order dated January 03, 2025. RBI said the penalty was for non-compliance with KYC directions, specifically that the bank failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection and a show-cause process.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a statutory inspection found non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank had failed to upload customer KYC records to CKYCR within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty; the release does not announce any business restriction, suspension, or cancellation. The underlying compliance lapse may still expose the bank to further supervisory or enforcement action by RBI.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 3 Jan 2025
- Effective From
- 3 Jan 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank