RBI imposes monetary penalty on The Gauhati Co-operative Urban Bank Limited

Case Brief

RBI, by order dated November 11, 2024, imposed a monetary penalty of ₹80,000 on The Gauhati Co-operative Urban Bank Limited. The action followed a statutory inspection and a show-cause notice based on supervisory findings of non-compliance with RBI directions on KYC and membership/reporting obligations relating to Credit Information Companies. RBI sustained the charges that the bank failed to review risk categorisation of accounts at least once in six months, upload KYC records to CKYCR within 10 days of account-based relationship commencement, undertake risk-based KYC updation, and submit borrowers' credit information to CICs. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and section 25 of the Credit Information Companies (Regulation) Act, 2005.