Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
16 Dec 2024
Case Brief
RBI, by order dated December 13, 2024, imposed a monetary penalty of ₹1.00 lakh on The Bhadran People’s Co-operative Bank Ltd., Dist. Anand, Gujarat. The penalty was imposed after supervisory examination found violations of RBI directions relating to interest rate on deposits and KYC compliance. RBI noted that the bank had accepted interest-free deposits in accounts other than current accounts and failed to upload customer KYC records to the CKYCR within the prescribed timeline. 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 as of March 31, 2023 found non-compliance with RBI directions on Interest Rate on Deposits and KYC. The sustained charges were that the bank accepted interest-free deposits in accounts other than current accounts and did not upload customer KYC records to the Central KYC Records Registry within the required time.
Operating Impact
The bank must absorb the monetary penalty and address the compliance deficiencies identified by RBI. The order does not state any operational restriction, but it signals continued supervisory scrutiny and leaves the bank exposed to further regulatory action if similar lapses persist.
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
- 13 Dec 2024
- Effective From
- 13 Dec 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank