Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
13 Jan 2025
Case Brief
By an order dated January 03, 2025, RBI imposed a monetary penalty of Rs 50,000 on Virudhunagar Co-operative Urban Bank Limited, Virudhunagar, 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 supervisory findings showed that the bank had failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then sustained the charge.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection found non-compliance with RBI’s KYC directions. The sustained charge was that Virudhunagar Co-operative Urban Bank Limited did not upload customer KYC records to CKYCR within the prescribed timeline, in contravention of directions issued under the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and remain mindful of continued compliance with RBI’s KYC directions, especially timely CKYCR uploads. The order does not itself impose an operational restriction, but it signals regulatory scrutiny and the possibility of further RBI action if deficiencies persist.
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