RBI imposes monetary penalty on The Bank Employees’ Co-operative Bank Ltd., West Bengal

Case Brief

By an order dated June 26, 2024, RBI imposed a monetary penalty of ₹1 lakh on The Bank Employees’ Co-operative Bank Ltd., West Bengal. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection with reference to the bank’s financial position as on March 31, 2023 found non-compliance with RBI directions on Know Your Customer (KYC). RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charge of not implementing a system of periodic review of risk categorisation of accounts had been sustained.