Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Dec 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty on Shri Laxmikrupa Urban Co-operative Bank Limited, Pune for non-compliance with RBI directions on KYC. RBI said its inspection revealed that the bank had not conducted periodic review of the risk categorisation of its customers. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank’s reply, oral submissions, and additional submissions.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after its inspection found that the bank had not conducted periodic review of the risk categorisation of its customers, constituting non-compliance with the RBI Know Your Customer (KYC) Direction, 2016.
Operating Impact
The bank must bear the monetary penalty and ensure future compliance with RBI KYC requirements, including periodic review of customer risk categorisation. The action does not itself impose an operational restriction, but it signals supervisory scrutiny of the bank’s AML/KYC controls.
Regulatory Basis
- Section 47A(1)(c)
- Section 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 20 Nov 2023
- Effective From
- 20 Nov 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank