RBI imposes monetary penalty on The Citizen Co-operative Bank Ltd., Noida

Case Brief

By an order dated May 30, 2025, RBI imposed a monetary penalty of Rs 6.00 lakh on The Citizen Co-operative Bank Ltd., Noida. The penalty was imposed after a statutory inspection and a show-cause process found contravention of Section 12B read with Section 56 of the Banking Regulation Act, 1949, along with non-compliance with RBI directions on KYC. RBI said the bank failed to obtain prior permission before a person was issued/allotted shares along with relatives beyond the permissible limit, and failed to put in place robust software to identify suspicious transactions. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.