RBI imposes monetary penalty on The Andhra Pradesh State Co-operative Bank Limited, Vijayawada

Case Brief

RBI, by order dated December 14, 2022, imposed a monetary penalty of ₹26,91,330 on The Andhra Pradesh State Co-operative Bank Limited, Vijayawada. The penalty was based on non-compliance with RBI’s KYC Directions, 2016, RBI directions on membership of Credit Information Companies, and NABARD directions on fraud classification, reporting and monitoring. NABARD’s inspection found that the bank lacked robust software for identifying and reporting suspicious transactions, had not submitted data to all four CICs as of March 31, 2020, and had failed to report fraud cases within the prescribed timeline. RBI concluded that the charges were substantiated and imposed the penalty under the relevant provisions of the Credit Information Companies (Regulation) Act, 2005 and the Banking Regulation Act, 1949.