Case Brief
By an order dated August 23, 2022, RBI imposed a monetary penalty of ₹1,00,000 on The Kendrapara Urban Cooperative Bank, Kendrapara for contravention of RBI's KYC directions. An inspection based on the bank's financial position as on March 31, 2020 found that the bank had not undertaken periodic review of the risk categorisation of customer accounts. After issuing a show-cause notice and considering the bank's reply and additional submissions, RBI concluded that the non-compliance was substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Kendrapara, Odisha
- Order Date