Recorded RBI impact
Fine: Rs 1.10 L
Monetary penalty · Fresh imposition
Published by RBI
27 Mar 2023
Case Brief
RBI imposed a monetary penalty on Kolkata Police Co-operative Bank Ltd., Kolkata, West Bengal, by order dated March 24, 2023. The penalty was levied for contravention of, and non-adherence with, certain provisions of the RBI (Know Your Customer (KYC)) Direction, 2016. The inspection found that the bank had failed to comply with directions relating to periodic review of risk categorisation of accounts and allotment of Unique Customer Identification Code (UCIC). After a show-cause notice, the bank's reply and submissions were considered, and RBI concluded that the charges were substantiated and warranted penalty under 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 inspection found non-adherence to the Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016. The bank had failed to comply with RBI directions on periodic review of risk categorisation of accounts and allotment of Unique Customer Identification Code (UCIC).
Operating Impact
The bank must absorb the financial penalty and ensure stronger compliance with RBI KYC requirements going forward, including periodic risk categorisation reviews and UCIC allotment. The order does not invalidate customer transactions, but it signals regulatory non-compliance that the bank must correct to avoid further supervisory action.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
- Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016
Action Facts
- Primary Impact
- Fine: Rs 1.10 L
- Order Date
- 24 Mar 2023
- Effective From
- 24 Mar 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank