Case Brief
RBI, by order dated December 08, 2023, imposed a monetary penalty of ₹1.50 lakh on The Bhuj Commercial Co-operative Bank Limited, Dist. Kachchh, Gujarat. The bank was penalised for non-compliance with RBI's KYC Direction, 2016 and the RBI directions on interest rate on deposits, after inspection revealed deficiencies including failure to categorise customers by risk and acceptance of interest-free deposit accounts other than current accounts. RBI stated the penalty was based on regulatory compliance deficiencies and not intended to pronounce on the validity of any transaction or agreement with customers.
Action Snapshot
- Primary Impact
- Fine: Rs 1.50 L
- Entity Type
- Co-operative bank
- Location
- Kachchh, Gujarat