Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
8 Dec 2025
Case Brief
By an order dated December 1, 2025, RBI imposed a monetary penalty of ₹50,000 on The Assam Co-operative Apex Bank Limited, Guwahati. The penalty was imposed after RBI found non-compliance with its KYC directions, specifically that the bank did not carry out periodic review of the risk categorization of accounts at least once in six months. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following supervisory findings, a show-cause notice, and consideration of the bank’s reply and oral submissions.
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 supervisory findings showed non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to carry out periodic review of risk categorization of accounts with the required periodicity of at least once in six months.
Operating Impact
The bank must absorb the monetary penalty and remain prepared for any further supervisory or enforcement action RBI may choose to initiate. The penalty does not itself impose an operational restriction, but it underscores the need for continued compliance with KYC requirements, especially periodic risk-categorization reviews.
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
- 1 Dec 2025
- Effective From
- 1 Dec 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank