Case Brief
By an order dated April 27, 2023, RBI imposed a monetary penalty of ₹4.10 lakh on The Jamnagar District Co-operative Bank Limited (Gujarat). The penalty was issued for contravention and non-compliance with Section 26A(2) of the Banking Regulation Act, 1949, the Depositor Education and Awareness Fund Scheme, 2014, the RBI KYC Directions, 2016, and provisions of the Credit Information Companies (Regulation) Act, 2005, as well as RBI directions on membership of CICs by co-operative banks. NABARD’s statutory inspection found failures in transferring eligible amounts to the DEA Fund, in having systems for customer risk categorisation review and periodic KYC updation, in maintaining a system/software to identify suspicious transactions, and in reporting data to three CICs.
Action Snapshot
- Primary Impact
- Fine: Rs 4.10 L
- Entity Type
- Co-operative bank
- Location