Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
20 Nov 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on The Big Kancheepuram Co-operative Town Bank Limited, Tamil Nadu, by order dated November 12, 2025. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI's statutory inspection and subsequent supervisory process found non-compliance with RBI's KYC directions. RBI held that the bank failed to upload customers' KYC records to the Central KYC Records Registry within the prescribed timeline.
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 inspection found that the bank had not complied with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to upload KYC records of customers to CKYCR within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and address the KYC compliance lapse identified by RBI. The order does not itself impose a business restriction, but the bank may face further supervisory or enforcement action if similar deficiencies continue. Customers are indirectly affected only to the extent that KYC record handling and compliance processes must be tightened.
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
- 12 Nov 2025
- Effective From
- 12 Nov 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank