Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
13 Feb 2025
Case Brief
RBI, by order dated February 07, 2025, imposed a monetary penalty of ₹50,000 on The Ramanathapuram Co-operative Urban Bank Ltd., Ramanathapuram, Tamil Nadu. The penalty followed a statutory inspection and subsequent show-cause proceedings, in which RBI found that the bank had not complied with certain KYC directions, including failure to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty because, during supervisory inspection and follow-up proceedings, it found non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to upload KYC records of customers to CKYCR within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the penalty and address the identified KYC compliance weakness. The order does not itself restrict operations or customer transactions, but RBI indicated it may initiate further action if warranted.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 7 Feb 2025
- Effective From
- 7 Feb 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank