Recorded RBI impact
Fine: Rs 25,000
Monetary penalty · Fresh imposition
Published by RBI
13 Jan 2025
Case Brief
By an order dated January 03, 2025, RBI imposed a monetary penalty of ₹25,000 on The Arcot Co-operative Urban Bank Limited, Tamil Nadu. The penalty was imposed after a statutory inspection and show-cause process found that the bank had not uploaded customer KYC records to CKYCR within the prescribed timeline, constituting non-compliance with RBI directions on KYC. The action was taken 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 found non-compliance with RBI directions on KYC. The sustained charge was that the bank failed to upload KYC records of customers onto CKYCR within the prescribed timeline.
Operating Impact
The bank must absorb the penalty and address the KYC compliance lapse going forward, especially the timely upload of customer KYC records to CKYCR. The order itself does not impose an operational restriction, but RBI has indicated that further action may still be initiated separately.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 25,000
- Order Date
- 3 Jan 2025
- Effective From
- 3 Jan 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank