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The Jawhar Urban Co-operative Bank Limited

Co-operative bankPalghar, Maharashtra

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 1.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

12 Oct 2023

Case Brief

By an order dated September 15, 2023, RBI imposed a monetary penalty on The Jawhar Urban Co-operative Bank Limited, Palghar, Maharashtra, for non-compliance with its Know Your Customer (KYC) directions. The regulator’s inspection found that the bank had not established a system for periodic updation of KYC of its customers. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charge was substantiated, warranting the penalty under the Banking Regulation Act, 1949.

Why RBI Acted

KYC / AML

RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. In the statutory inspection of the bank with reference to its financial position as on March 31, 2022, RBI found that the bank had failed to establish a system for periodic updation of customer KYC, constituting non-compliance with RBI’s Know Your Customer directions.

Operating Impact

The bank must absorb the monetary penalty and continue complying with RBI’s KYC requirements, including periodic customer KYC updates. The action does not itself impose an operational restriction, but it underscores ongoing compliance obligations for the bank.

Regulatory Basis

  • Section 47 A (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
15 Sept 2023
Effective From
15 Sept 2023
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank