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Ratnagiri Urban Co-operative Bank Ltd., Ratnagiri, Maharashtra

Co-operative bankRatnagiri, Maharashtra

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 2.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

24 Aug 2023

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Ratnagiri Urban Co-operative Bank Ltd., Ratnagiri, Maharashtra for non-compliance with provisions of RBI’s KYC Directions, 2016. RBI said its inspection found deficiencies in the bank’s compliance framework, including failure to put in place robust software to generate alerts for effective identification and reporting of suspicious transactions and failure to conduct periodic review of risk categorization of accounts. After issuing a show-cause notice and considering the bank’s reply, RBI concluded that the charge of non-compliance was substantiated and warranted the penalty, imposed under the Banking Regulation Act, 1949.

Why RBI Acted

KYC / AMLReporting & disclosure

RBI imposed a monetary penalty after its statutory inspection and review of the Risk Assessment Report and related correspondence found that the bank had failed to put in place robust software to generate alerts for effective identification and reporting of suspicious transactions, and had not conducted periodic review of risk categorization of accounts. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) and section 56 of the Banking Regulation Act, 1949, for non-compliance with RBI’s Know Your Customer (KYC) Directions, 2016.

Operating Impact

The bank must absorb the penalty and continue complying with RBI’s KYC and transaction-monitoring requirements. The release does not indicate a suspension or operational restriction, but it signals the need for stronger suspicious-transaction alerting and periodic account risk reviews going forward.

Regulatory Basis

  • section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the Banking Regulation Act, 1949
  • Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016

Action Facts

Primary Impact
Fine: Rs 2.00 L
Order Date
17 Aug 2023
Effective From
17 Aug 2023
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank