RBI imposes monetary penalty on Chhattisgarh Rajya Sahakari Bank Maryadit, Raipur

Case Brief

RBI, by order dated August 03, 2022, imposed a monetary penalty of ₹25.00 lakh on Chhattisgarh Rajya Sahakari Bank Maryadit, Raipur for non-compliance with certain provisions of the RBI (Know Your Customer (KYC)) Directions, 2016. The lapse arose from a statutory inspection by NABARD for the bank’s financial position as on March 31, 2020, which found that the bank had failed to put in place a system of periodic review of the risk categorization of customers. RBI said the penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.