Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
30 Jun 2025
Case Brief
By an order dated June 24, 2025, RBI imposed a monetary penalty of ₹50,000 on Saibaba Nagari Sahakari Bank Maryadit, Sailu, Maharashtra. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2024, which found non-compliance with RBI KYC directions. RBI held that the bank had failed to upload certain customers’ KYC records to the CKYCR within the prescribed time and had not carried out periodic updation of KYC for certain customers as required. 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 after supervisory inspection found the bank had not complied with certain directions on Know Your Customer (KYC). Specifically, the bank failed to upload KYC records of certain customers to the Central KYC Records Registry (CKYCR) within the prescribed time and failed to conduct periodic updation of KYC for certain customers as per the prescribed periodicity. 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 monetary penalty and address the KYC control gaps identified by RBI. The release does not describe any direct operational restriction, but the findings may support further supervisory or enforcement action if compliance issues continue.
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
- 24 Jun 2025
- Effective From
- 24 Jun 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank