The Karjan Nagarik Sahakari Bank Limited

Following a statutory inspection with reference to the bank's financial position as on March 31, 2023, RBI found that The Karjan Nagarik Sahakari Bank Limited had contravened sections 18 and 26A read with section 56 of the Banking Regulation Act, 1949 and had not complied with directions on Membership of Credit Information Companies by Co-operative Banks, Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks, and Know Your Customer norms. The specific findings included failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, failure to maintain the minimum Cash Reserve Ratio for certain days during FY 2021-22, failure to submit borrower credit information to any CIC as on March 31, 2023, failure to adhere to the prudential inter-bank counterparty exposure limit, and failure to carry out risk-based periodic updation of KYC of certain customers as prescribed. RBI imposed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and section 25 of the Credit Information Companies (Regulation) Act, 2005.

The bank must absorb the penalty and address the compliance deficiencies identified by RBI, including unclaimed deposits transfer, CRR maintenance, CIC reporting, counterparty exposure controls, and KYC updation processes. The action may also support any further supervisory or enforcement steps RBI chooses to initiate.