Recorded RBI impact
Fine: Rs 25,000
Monetary penalty · Fresh imposition
Published by RBI
24 Feb 2025
Case Brief
By an order dated February 19, 2025, RBI imposed a monetary penalty of Rs 25,000 on Mahila Sahakari Bank Ltd., Dist. Vadodara, Gujarat. The penalty was based on non-compliance with RBI’s KYC directions, specifically the bank’s failure to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank’s reply, oral submissions, and additional submissions following a show-cause notice.
Why RBI Acted
RBI imposed a monetary penalty after finding, from the statutory inspection and subsequent proceedings, that the bank had not complied with RBI directions on Know Your Customer (KYC). The sustained charge was that it failed to upload customer KYC records to CKYCR within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and ensure future compliance with RBI’s KYC and CKYCR reporting requirements. The order does not itself impose an operational restriction, but it signals continued supervisory scrutiny and the possibility of further action if similar non-compliance recurs.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 25,000
- Order Date
- 19 Feb 2025
- Effective From
- 19 Feb 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank