Recorded RBI impact
Fine: Rs 3.10 L
Monetary penalty · Fresh imposition
Published by RBI
7 Aug 2025
Case Brief
RBI, by order dated August 05, 2025, imposed a monetary penalty of Rs 3.10 lakh on Raiganj Central Co-operative Bank Limited, West Bengal. The penalty was imposed after RBI found that the bank had violated directions on KYC, including failure to upload customer KYC records to CKYCR within the prescribed timeline and issuance of multiple customer identification codes to certain customers instead of a UCIC. RBI stated that the action was based on supervisory findings and does not pronounce on the validity of any transaction or agreement.
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 non-compliance with RBI directions on Know Your Customer (KYC). The sustained charges were that the bank failed to upload KYC records of customers to the Central KYC Records Registry (CKYCR) within the prescribed timeline and allotted multiple customer identification codes to certain individual customers instead of a Unique Customer Identification Code (UCIC) for each customer.
Operating Impact
The bank must absorb the monetary penalty and address the compliance gaps identified by RBI, especially KYC record upload timelines and UCIC allocation practices. The order does not by itself impose an operational ban, but it signals continuing supervisory scrutiny and leaves room for further RBI action if warranted.
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 3.10 L
- Order Date
- 5 Aug 2025
- Effective From
- 5 Aug 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank