The Kosamba Mercantile Co-operative Bank Ltd., Dist. Surat, Gujarat

RBI imposed a monetary penalty after supervisory inspection found the bank had not complied with certain directions on placement of deposits with other banks by primary (urban) co-operative banks and on Know Your Customer (KYC). The sustained charges included failure to adhere to prudential inter-bank (gross) and counterparty exposure limits, failure to upload customer KYC records to CKYCR within the prescribed time, and failure to periodically review risk categorisation of accounts at least once every six months. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and remain subject to RBI supervisory oversight. The order itself does not impose an operating restriction, but it signals compliance deficiencies that may invite further regulatory action if similar breaches continue.