Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
26 Dec 2024
Case Brief
By an order dated December 18, 2024, RBI imposed a monetary penalty of Rs 50,000 on Manjra Mahila Urban Co-operative Bank Limited, Bidar, Karnataka for non-compliance with RBI directions on Know Your Customer (KYC). RBI said the supervisory inspection found that the bank had failed to upload customers’ KYC records to the Central KYC Records Registry (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.
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 findings showed the bank did not comply with RBI directions on Know Your Customer (KYC). The specific charge sustained was that the bank failed to upload customer KYC records to CKYCR within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and address its KYC compliance processes, especially timely CKYCR uploads. The release also notes the penalty is without prejudice to any other action RBI may initiate, so further supervisory or enforcement action remains possible.
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
- 18 Dec 2024
- Effective From
- 18 Dec 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank