Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
9 Jan 2025
Case Brief
By an order dated January 03, 2025, RBI imposed a monetary penalty of ₹50,000 on The Sivakasi Co-operative Urban Bank Limited, Tamil Nadu for non-compliance with RBI directions on KYC. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. RBI stated that the sustained charge was the bank’s failure to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline, based on supervisory findings from an inspection with reference to the bank’s financial position as on March 31, 2023.
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 supervisory inspection found non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to upload customer KYC records to CKYCR within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and address the identified KYC compliance lapse. The order does not itself restrict operations or invalidate customer transactions, but RBI noted that further action may be initiated separately if warranted.
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 50,000
- Order Date
- 3 Jan 2025
- Effective From
- 3 Jan 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank