Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
5 Jun 2025
Case Brief
By an order dated June 3, 2025, RBI imposed a monetary penalty of ₹1 lakh on Poornawadi Nagarik Sahakari Bank Maryadit, Beed, Maharashtra. The action followed a statutory inspection as of March 31, 2024 and subsequent supervisory proceedings. RBI found sustained contraventions involving sanction of certain gold loans beyond the prescribed Loan to Value ceiling and failure to upload certain customers' KYC records to CKYCR within the prescribed time, in violation of RBI directions on Management of Advances - UCBs and KYC.
Why RBI Acted
RBI imposed a monetary penalty after supervisory inspection found non-compliance with directions on 'Management of Advances - UCBs' and Know Your Customer (KYC). The sustained charges were that the bank sanctioned certain gold loans in excess of the prescribed LTV ratio and failed to upload KYC records of certain customers 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.
Operating Impact
The bank must absorb the penalty and address the compliance deficiencies identified by RBI. The order does not invalidate customer transactions, but RBI may initiate further action if it deems necessary; the underlying expectations on gold-loan prudential limits and KYC record reporting remain in force.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 3 Jun 2025
- Effective From
- 3 Jun 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank