Recorded RBI impact
Fine: Rs 50,000
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 Rs 50,000 on The Cordite Factory Co-operative Bank Ltd., Aravankadu, Nilgiris, Tamil Nadu. The penalty was imposed for non-compliance with RBI directions on Know Your Customer (KYC), specifically for failure to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline, 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 supervisory findings showed non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank had not uploaded KYC records of customers to CKYCR within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and address the KYC process lapse identified by RBI. The action does not itself impose a business restriction, but RBI noted it is without prejudice to any other action that may be initiated later.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 3 Jan 2025
- Effective From
- 3 Jan 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank