RBI imposes monetary penalty on The Rohika Central Co-operative Bank Limited, Madhubani, Bihar

Case Brief

RBI imposed a monetary penalty on The Rohika Central Co-operative Bank Limited, Madhubani, Bihar for non-compliance with RBI’s Know Your Customer (KYC) directions. Following NABARD’s statutory inspection and a show-cause process, RBI concluded that the bank had failed to risk-categorize all customers, periodically review the risk categorization of accounts, and periodically update KYC documents. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.