Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
29 Apr 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Vaish Co-operative Adarsh Bank Limited, New Delhi. The penalty was issued under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after RBI’s inspection and subsequent show-cause proceedings. RBI found that the bank had not complied with its Know Your Customer (KYC) Directions, 2016, and specifically sustained the charge of allotting multiple UCICs to customers.
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 a statutory inspection and show-cause process. The bank was found to have failed to comply with RBI’s Know Your Customer (KYC) Directions, 2016, including the allotment of multiple UCICs to customers.
Operating Impact
The bank must absorb the penalty and may face further regulatory action, as the press release states the monetary penalty is without prejudice to any other action RBI may initiate. There is no immediate business restriction described in this release, but the finding underscores continued compliance obligations under RBI’s KYC framework.
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 1.00 L
- Order Date
- 17 Apr 2024
- Effective From
- 17 Apr 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank