Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
8 Aug 2022
Case Brief
By an order dated August 05, 2022, RBI imposed a monetary penalty of ₹1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Chhindwara. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after inspection findings showed delayed submission of statutory/OSS returns to RBI and NABARD, failure to periodically review customer risk categorisation, and failure to periodically update customer KYC. RBI stated that the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any transaction or agreement entered into with customers.
Why RBI Acted
RBI imposed a monetary penalty of ₹1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Chhindwara under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The inspection (based on financial position as on March 31, 2020) found delays in submitting statutory/OSS returns to RBI and NABARD, failure to periodically review customer risk categorisation, and failure to periodically update KYC, in contravention of the Act and RBI/NABARD directions, including KYC directions.
Operating Impact
The bank must bear the ₹1 lakh penalty, and the order serves as a regulatory reprimand for compliance lapses. The underlying obligations to maintain timely statutory reporting and periodic KYC/risk review remain in force; customers are not directly deprived of services by this order.
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 1.00 L
- Order Date
- 5 Aug 2022
- Effective From
- 5 Aug 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank