RBI imposes monetary penalty on The Rander People's Co-operative Bank Ltd., Surat, Gujarat

Case Brief

RBI, by order dated October 28, 2024, imposed a monetary penalty of ₹1.50 lakh on The Rander People's Co-operative Bank Ltd., Surat, Gujarat. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2023, and a show-cause notice. RBI found sustained charges relating to contravention of section 26A read with section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on KYC. The bank had not transferred eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, had not carried out risk-based updation of KYC of customers, and had not established a system for periodic review of risk categorisation of accounts at least once every six months. RBI stated the penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act and that the action was without prejudice to any other action that may be initiated.