Case Brief
By an order dated May 29, 2023, RBI imposed a monetary penalty of ₹2 lakh on Bajirao Appa Sahakari Bank Ltd., Ankalkhop. The penalty was for non-compliance with RBI directions on ‘Investments by Primary (Urban) Co-operative Banks’ and ‘Know Your Customers’ (KYC), based on inspection findings that the bank had breached prudential inter-bank gross and single counterparty exposure limits and had not put in place systems for periodic KYC updation or periodic review of risk categorisation of accounts. RBI stated that the action was based on regulatory deficiencies and did not pronounce on the validity of any transaction or agreement entered into by the bank.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Ankalkhop, Maharashtra