Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
11 Sept 2025
Case Brief
RBI, by order dated September 08, 2025, imposed a monetary penalty of ₹50,000 on Sikkim State Co-operative Bank Ltd. for non-compliance with RBI directions on Know Your Customer (KYC). The action followed a NABARD statutory inspection and a show-cause process in which RBI sustained the charge that the bank failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline. 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 under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a statutory inspection by NABARD found non-compliance with RBI directions on KYC. The sustained charge was that the bank had failed to upload customers’ KYC records to the Central KYC Records Registry within the prescribed timeline.
Operating Impact
The bank must absorb the penalty and address the identified KYC compliance weakness. The order does not invalidate customer transactions, but RBI notes that additional action may still be initiated separately.
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
- 8 Sept 2025
- Effective From
- 8 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank