RBI imposes monetary penalty on The Jawhar Urban Co-operative Bank Limited, Palghar, Maharashtra

Case Brief

By an order dated September 15, 2023, RBI imposed a monetary penalty on The Jawhar Urban Co-operative Bank Limited, Palghar, Maharashtra, for non-compliance with its Know Your Customer (KYC) directions. The regulator’s inspection found that the bank had not established a system for periodic updation of KYC of its customers. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charge was substantiated, warranting the penalty under the Banking Regulation Act, 1949.