Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
28 Mar 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on Porbandar Commercial Co-operative Bank Limited, Dist. Porbandar, Gujarat, by order dated March 27, 2025. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection and subsequent supervisory proceedings. RBI found that the bank had failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline, constituting non-compliance with RBI’s KYC directions.
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 a statutory inspection found non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty; the order does not itself impose an operational restriction, but it signals ongoing supervisory scrutiny. Customers are not directly impacted by a service ban, though the bank remains subject to further regulatory action if similar non-compliance continues.
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
- 27 Mar 2025
- Effective From
- 27 Mar 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank