Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
21 Jul 2025
Case Brief
RBI, by order dated July 17, 2025, imposed a monetary penalty of ₹1 lakh on The Government Employees Co-operative Bank Limited, Dharwad, Karnataka. The penalty was levied for non-compliance with RBI directions on Know Your Customer (KYC) and the Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks. RBI said the bank failed to upload customer KYC records to CKYCR within the prescribed timeline and did not implement certain cyber security control measures and requirements. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection and a show-cause process.
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 found non-compliance with RBI directions on Know Your Customer (KYC) and the Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks. The sustained charges were that the bank did not upload KYC records to the Central KYC Records Registry within the prescribed timeline and did not implement certain cyber security control measures and requirements mandated by RBI.
Operating Impact
The bank must absorb the penalty and address the compliance gaps identified by RBI. The order does not itself invalidate customer transactions, but it signals supervisory concern and leaves the bank exposed to any further action RBI may initiate for the same or related lapses.
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
- 17 Jul 2025
- Effective From
- 17 Jul 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank