Case Brief
By an order dated November 05, 2024, RBI imposed a monetary penalty of ₹50,000 on The Sathamba People's Co-operative Bank Ltd., Aravalli, Gujarat. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI's inspection and subsequent proceedings found non-compliance with directions on Know Your Customer (KYC). Specifically, the bank failed to put in place a system for periodic updation of KYC of its customers and failed to carry out periodic review of risk categorisation of accounts at least once in six months.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Aravalli, Gujarat