Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
24 Nov 2025
Case Brief
RBI, by order dated November 20, 2025, imposed a monetary penalty of ₹2 lakh on The Fatehpur District Co-operative Bank Limited, Uttar Pradesh. The penalty was issued after supervisory inspection and subsequent show-cause proceedings, where RBI found sustained charges of non-compliance with directions on Know Your Customer (KYC). Specifically, the bank had failed to maintain a system for periodic review of risk categorisation of accounts at least once every six months and had also failed to carry out periodic updation of customer KYC. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Why RBI Acted
RBI imposed a monetary penalty on The Fatehpur District Co-operative Bank Limited, Uttar Pradesh under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. The penalty followed supervisory findings and show-cause proceedings in which RBI sustained charges that the bank had not implemented a system for periodic review of the risk categorisation of accounts at least once every six months and had not carried out periodic updation of KYC of its customers. The action is based on deficiencies in compliance with RBI's KYC directions.
Operating Impact
The bank must absorb the monetary penalty and address the identified KYC control gaps, including periodic risk categorisation review and KYC updation processes. The order does not itself impose a business restriction, but RBI may initiate other action separately if warranted.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of BR Act
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 20 Nov 2025
- Effective From
- 20 Nov 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank