RBI imposes monetary penalty on The Karjan Nagarik Sahakari Bank Limited, Karjan, Dist. Vadodara, Gujarat

Case Brief

RBI imposed a monetary penalty on The Karjan Nagarik Sahakari Bank Limited, Karjan, Dist. Vadodara, Gujarat, by order dated November 15, 2024. The penalty was levied for contravention of sections 18 and 26A read with section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI directions relating to membership of Credit Information Companies by co-operative banks, placement of deposits with other banks by primary (urban) co-operative banks, and KYC norms. RBI said the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, maintain the minimum Cash Reserve Ratio on certain days during FY 2021-22, submit borrower credit information to CICs as of March 31, 2023, adhere to prudential inter-bank counterparty exposure limits, and carry out periodic risk-based KYC updation for certain customers. The penalty was imposed under RBI's statutory powers after inspection and consideration of the bank's response.