Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Eastern & North-East Frontier Railway Co-operative Bank Ltd., Kolkata, West Bengal, by an order dated December 07, 2022. RBI said the bank contravened specific directions issued under the Supervisory Action Framework (SAF) and certain provisions of the RBI (Know Your Customer (KYC)) Direction, 2016. The inspection report found deficiencies including failure to comply with SAF directions and RBI directions on periodic review of risk categorisation of accounts. After a show-cause notice, RBI considered the bank’s reply and hearing submissions and concluded that the non-compliance was substantiated, warranting the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Kolkata, West Bengal