Case Brief
By an order dated October 28, 2024, RBI imposed a monetary penalty on Mehmadabad Urban People’s Co-operative Bank Ltd., Mehmadabad, Dist. Kheda, Gujarat. The penalty was imposed after supervisory inspection and a show-cause process found sustained charges of non-compliance with RBI directions on membership of Credit Information Companies (CICs) by co-operative banks and Know Your Customer (KYC) requirements. RBI noted that the bank failed to submit data to three CICs, submitted incomplete data to one CIC, and did not carry out periodic review of risk categorisation of accounts at least once in six months.
Action Snapshot
- Primary Impact
- Fine: Rs 60,000
- Entity Type
- Co-operative bank
- Location
- Mehmadabad, Gujarat