RBI imposes monetary penalty on The Bihar Awami Co-operative Bank Limited, Patna

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.50 lakh on The Bihar Awami Co-operative Bank Ltd., Patna by order dated September 20, 2024. RBI said the bank had contravened section 26A read with section 56 of the Banking Regulation Act, 1949 and had not complied with certain KYC directions. The cited lapses included failure to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period and failure to review customer risk categorisation as required. RBI noted that the penalty is based on regulatory compliance deficiencies and does not pronounce on the validity of any transaction or agreement with customers.