Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Dhule and Nandurbar Jilha Sarkari Nokaranchi Sahakari Bank Ltd., Dhule (Maharashtra), for failing to comply with RBI's KYC directions applicable to Urban Co-operative Banks. The bank was found to have shortcomings in periodic review of risk categorisation, periodic KYC updation based on risk categorisation, and systems for generating alerts to monitor and report suspicious transactions. RBI stated that the penalty was imposed after considering the bank's replies and submissions, and clarified that the action was based on regulatory compliance deficiencies rather than the validity of any customer transaction or agreement.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Dhule, Maharashtra