Recorded RBI impact
Fine: Rs 25.0 L
Monetary penalty · Fresh imposition
Published by RBI
8 Aug 2022
Case Brief
RBI, by order dated August 03, 2022, imposed a monetary penalty of ₹25.00 lakh on Chhattisgarh Rajya Sahakari Bank Maryadit, Raipur for non-compliance with certain provisions of the RBI (Know Your Customer (KYC)) Directions, 2016. The lapse arose from a statutory inspection by NABARD for the bank’s financial position as on March 31, 2020, which found that the bank had failed to put in place a system of periodic review of the risk categorization of customers. RBI said the penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.
Why RBI Acted
Following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2020, and review of the inspection report and related correspondence, RBI found that Chhattisgarh Rajya Sahakari Bank Maryadit, Raipur had not established a system for periodic review of the risk categorization of customers. RBI concluded that this amounted to non-compliance with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016 and imposed a monetary penalty 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 financial penalty and ensure its KYC controls are strengthened, especially periodic review of customer risk categorization. The action has no stated restriction on operations, but it signals continued supervisory scrutiny over compliance processes.
Regulatory Basis
- section 47 A (1) (c) read with sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949
- Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016
Action Facts
- Primary Impact
- Fine: Rs 25.0 L
- Order Date
- 3 Aug 2022
- Effective From
- 3 Aug 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank