Case Brief
RBI imposed a monetary penalty of ₹1.00 lakh on The Muzzafarpur Central Co-operative Bank Ltd. by an order dated February 11, 2025. The action followed a statutory inspection by NABARD and supervisory findings that the bank had not complied with RBI directions on Know Your Customer, specifically by not conducting periodic updation of KYC of its customers. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then sustained the charge under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Muzzafarpur, Bihar
- Order Date