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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹75,000 on Jila Sahakari Kendriya Bank Maryadit, Sidhi, Madhya Pradesh, for non-compliance with the provisions of the Banking Regulation Act, 1949 and RBI directions on Know Your Customer (KYC). The penalty has been imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
An inspection of the bank, based on its financial position as of March 31, 2020, revealed delayed submission of statutory/OSS returns to RBI and NABARD, and the absence of a system to generate alerts and monitor suspicious transactions, in contravention of RBI and NABARD guidelines.
Following these findings, RBI issued a show-cause notice to the bank. After considering the bank’s written responses, oral submissions during a personal hearing, and additional submissions, RBI concluded that the non-compliance was substantiated and warranted the imposition of the monetary penalty.
[RBI]