Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
27 Oct 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Kamuthi Co-operative Urban Bank Ltd., Tamil Nadu, by order dated October 22, 2025. RBI said the bank failed to comply with certain KYC directions, specifically by not uploading customers’ KYC records to the Central KYC Records Registry (CKYCR). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a supervisory inspection, show-cause notice, the bank’s reply, and oral submissions during a personal hearing.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after supervisory inspection found that Kamuthi Co-operative Urban Bank Ltd. had not uploaded customer KYC records to the Central KYC Records Registry (CKYCR). The penalty followed a show-cause notice, the bank’s reply, and oral submissions at a personal hearing.
Operating Impact
The bank must bear the monetary penalty, and RBI noted the penalty is without prejudice to any other action that may be initiated. There is no stated restriction on the bank’s operations, but the compliance lapse remains relevant for supervisory follow-up.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 22 Oct 2025
- Effective From
- 22 Oct 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank