RBI imposes monetary penalty on The Manmandir Co-operative Bank Limited, Vita, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on The Manmandir Co-operative Bank Limited, Vita, Maharashtra, after finding non-compliance with RBI directions on Know Your Customer (KYC) and maintenance of deposit accounts for primary urban co-operative banks. The inspection revealed lapses including failure to periodically update KYC for high-risk customers, failure to periodically review risk categorisation of accounts, and failure to carry out the annual review of inoperative or dormant accounts. RBI said the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.