Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
17 Mar 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹0.50 lakh on Jila Sahakari Kendriya Bank Maryadit, Tikamgarh, after finding contravention of RBI directions on Know Your Customer (KYC). The bank's inspection report for its financial position as on March 31, 2019, revealed the non-compliance, and RBI said the charge was substantiated after considering the bank's reply. 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 because the bank failed to comply with RBI directions on Know Your Customer (KYC). The inspection report for the bank's financial position as on March 31, 2019, found non-compliance/contravention of the KYC directions, and RBI concluded the charge was substantiated under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the penalty and address the underlying KYC compliance gaps to avoid further supervisory action. The order does not invalidate customer transactions, but it signals continued regulatory scrutiny of the bank's compliance controls.
Regulatory Basis
- Section 47A(1)(c)
- Section 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 16 Mar 2021
- Effective From
- 16 Mar 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank