Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
28 Mar 2025
Case Brief
RBI, by order dated March 26, 2025, imposed a monetary penalty of ₹50,000 on The Vellore Co-operative Town Bank Ltd., 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, following an inspection with reference to the bank's financial position as on March 31, 2024. RBI said the bank had failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline, in breach of RBI directions on KYC.
Why RBI Acted
RBI imposed a penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after supervisory findings showed non-compliance with RBI's KYC directions. The sustained charge was that the bank did not upload KYC records of customers onto CKYCR within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and continue complying with RBI's KYC requirements, including timely CKYCR uploads. The order does not itself impose an operating restriction, but it signals supervisory non-compliance and leaves open the possibility of further RBI action.
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
- 26 Mar 2025
- Effective From
- 26 Mar 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank