Recorded RBI impact
Fine: Rs 1.25 L
Monetary penalty · Fresh imposition
Published by RBI
12 Dec 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty on Jijau Commercial Co-operative Bank Ltd., Amravati, Maharashtra by order dated December 05, 2022. The penalty was for contravention of RBI directions to urban co-operative banks regarding Know Your Customer (KYC) compliance and opening of on-site ATMs. RBI said the inspection revealed that the bank had not periodically updated customer KYC and had opened an on-site ATM in violation of the applicable directions. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
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 an inspection found that the bank had not carried out periodic updation of KYC of customers and had opened an on-site ATM in contravention of RBI directions issued to urban co-operative banks on KYC and on-site ATM operations. RBI concluded the contraventions were substantiated after considering the bank's replies and submissions.
Operating Impact
The bank must absorb the monetary penalty; the release does not indicate any suspension, restriction, or withdrawal of banking operations. The compliance lapses relate to KYC maintenance and ATM-related directions, but the action itself is limited to the fine imposed on the bank.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.25 L
- Order Date
- 5 Dec 2022
- Effective From
- 5 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank