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The Andhra Pradesh State Co-operative Bank Limited

Co-operative bankVijayawada, Andhra Pradesh

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

Recorded RBI impact

Fine: Rs 26.9 L

Monetary penalty · Fresh imposition

S3

Published by RBI

19 Dec 2022

Case Brief

RBI, by order dated December 14, 2022, imposed a monetary penalty of ₹26,91,330 on The Andhra Pradesh State Co-operative Bank Limited, Vijayawada. The penalty was based on non-compliance with RBI’s KYC Directions, 2016, RBI directions on membership of Credit Information Companies, and NABARD directions on fraud classification, reporting and monitoring. NABARD’s inspection found that the bank lacked robust software for identifying and reporting suspicious transactions, had not submitted data to all four CICs as of March 31, 2020, and had failed to report fraud cases within the prescribed timeline. RBI concluded that the charges were substantiated and imposed the penalty under the relevant provisions of the Credit Information Companies (Regulation) Act, 2005 and the Banking Regulation Act, 1949.

Why RBI Acted

KYC / AMLReporting & disclosure

RBI imposed a monetary penalty after NABARD’s statutory inspection found that the bank had deficiencies in regulatory compliance. The bank did not use robust software for effective identification and reporting of suspicious transactions, did not submit data including historic data to all four CICs as on March 31, 2020, and did not report fraud cases to NABARD within the stipulated timeline. The penalty was imposed under section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005, and 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 financial penalty and address the compliance deficiencies identified by RBI/NABARD. Going forward, it is expected to strengthen KYC/suspicious transaction monitoring, ensure timely and complete CIC data submission, and report fraud cases within regulatory timelines.

Regulatory Basis

  • section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005
  • section 47A (1) (c) read with sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949

Action Facts

Primary Impact
Fine: Rs 26.9 L
Order Date
14 Dec 2022
Effective From
14 Dec 2022
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank