Jila Sahakari Kendriya Bank Maryadit, Sidhi (M.P.)

RBI imposed a monetary penalty after an inspection based on the bank's financial position as on March 31, 2020 found that it had delayed submission of statutory/OSS returns to RBI and NABARD and had no system to generate alerts and monitor suspicious transactions. RBI held that these constituted contravention of/non-compliance with the Banking Regulation Act, 1949 and directions issued by RBI/NABARD on submission of returns and Know Your Customer (KYC). The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and address the compliance gaps identified by RBI, including timeliness of regulatory reporting and systems for suspicious transaction monitoring. The action does not describe a business restriction, but it signals heightened compliance expectations for the bank's ongoing operations.