RBI imposes monetary penalty on The Kancheepuram Central Co-operative Bank Ltd., Kancheepuram, Tamil Nadu

Case Brief

By an order dated June 11, 2024, RBI imposed a monetary penalty on The Kancheepuram Central Co-operative Bank Ltd., Kancheepuram, Tamil Nadu. The action followed NABARD’s statutory inspection of the bank as of March 31, 2023, which found non-compliance with NABARD’s directions on ‘Frauds - Guidelines for Classification, Reporting and Monitoring’. RBI noted that the charge of delay in reporting fraud to NABARD was sustained after considering the bank’s reply and oral submissions, and imposed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.