The Pij People’s Co-operative Bank Ltd., Dist. Kheda, (Gujarat) (Non-scheduled UCB) – Penalised

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Pij People’s Co-operative Bank Ltd., Dist. Kheda, Gujarat (a non-scheduled urban co-operative bank), under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 as applicable to co-operative societies. RBI said the bank violated instructions under the Supervisory Action Framework and KYC/AML guidelines by not allotting Unique Customer Identification Codes (UCIC) to customers, not having a system to generate alerts for transactions inconsistent with customer risk categorisation and profile, and not maintaining/reporting records of cash transactions above ₹10 lakh to FIU-IND. After a show-cause notice, written reply, and personal submission before RBI’s Committee of Senior Officers, RBI concluded the violations were substantiated and imposed a penalty of ₹4 lakh.