Case Brief
By an order dated November 18, 2024, RBI imposed a monetary penalty of ₹3.00 lakh on The Kapadwanj Peoples Co-operative Bank Limited, Kheda, Gujarat. RBI said the bank contravened Section 26A read with Section 56 of the Banking Regulation Act, 1949 and failed to comply with RBI directions on interest rate on deposits and KYC. The cited lapses included delayed transfer of eligible unclaimed amounts to the Depositor Education and Awareness Fund, acceptance of interest-free deposits in non-current accounts, opening savings accounts for institutions whose income was not fully exempt from income tax, and failure to perform risk-based KYC updation and periodic risk categorisation review.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Kheda, Gujarat