Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Ratnagiri Urban Co-operative Bank Ltd., Ratnagiri, Maharashtra for non-compliance with provisions of RBI’s KYC Directions, 2016. RBI said its inspection found deficiencies in the bank’s compliance framework, including failure to put in place robust software to generate alerts for effective identification and reporting of suspicious transactions and failure to conduct periodic review of risk categorization of accounts. After issuing a show-cause notice and considering the bank’s reply, RBI concluded that the charge of non-compliance was substantiated and warranted the penalty, imposed under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Ratnagiri, Maharashtra