RBI imposes monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Chhindwara (M.P.)

Case Brief

By an order dated August 05, 2022, RBI imposed a monetary penalty of ₹1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Chhindwara. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after inspection findings showed delayed submission of statutory/OSS returns to RBI and NABARD, failure to periodically review customer risk categorisation, and failure to periodically update customer KYC. RBI stated that the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any transaction or agreement entered into with customers.