Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
26 Dec 2024
Case Brief
RBI imposed a monetary penalty of ₹1.00 lakh on Swami Vivekanand Sahakari Bank Niyamit, Nidagundi, Karnataka, by an order dated December 18, 2024. The action was taken after a statutory inspection and supervisory findings showed non-compliance with RBI directions on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘Know Your Customer (KYC)’. RBI found that the bank had failed to adhere to prudential inter-bank (gross) and counterparty exposure limits and had not uploaded KYC records of customers to 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 for the bank's financial position as on March 31, 2023. Based on supervisory findings and the bank's reply/oral submissions, RBI sustained charges that the bank failed to adhere to prudential inter-bank (gross) and counterparty exposure limits and failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and address the compliance lapses identified by RBI. The order does not itself impose an operational restriction, but it signals supervisory concern over exposure-limit adherence and KYC reporting, and RBI may initiate further action if deficiencies persist. Depositors and counterparties are indirectly affected through the bank's need to tighten compliance controls.
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 1.00 L
- Order Date
- 18 Dec 2024
- Effective From
- 18 Dec 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank