Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
27 Oct 2025
Case Brief
By an order dated October 23, 2025, RBI imposed a monetary penalty of ₹1 lakh on The Valparai Co-operative Urban Bank Ltd., Coimbatore, Tamil Nadu. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after RBI’s statutory inspection, conducted with reference to the bank’s financial position as on March 31, 2024, found non-compliance with RBI’s KYC directions. RBI held that the bank had failed to upload customers’ KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
Why RBI Acted
RBI imposed a penalty on the bank under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a statutory inspection found non-compliance with RBI’s KYC directions. The sustained charge was that the bank did not upload KYC records of customers to CKYCR within the prescribed timeline.
Operating Impact
The bank must bear the monetary penalty and may face further regulatory action, as RBI stated the penalty is without prejudice to any other action it may initiate. There is no operational restriction described in this release, but the finding signals continued supervisory scrutiny over the bank’s KYC compliance processes.
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
- 23 Oct 2025
- Effective From
- 23 Oct 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank