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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.00 lakh on Balitikuri Cooperative Bank Ltd., Balitikuri, West Bengal, for non-compliance with its Know Your Customer (KYC) guidelines. This action has been taken under the powers conferred by Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949. The penalty addresses deficiencies in regulatory compliance and is not intended to comment on the validity of any transactions carried out by the bank with its customers.
The decision follows an inspection of the bank’s financial position as of March 31, 2020, which revealed that the bank had failed to conduct periodic reviews of customer risk categorization, a direct violation of RBI’s KYC directions. A notice was issued to the bank, asking it to show cause why the penalty should not be imposed. After considering the bank’s response and additional submissions, the RBI concluded that the non-compliance was substantiated and warranted the imposition of the monetary penalty.
This action reinforces RBI’s commitment to ensuring adherence to regulatory norms and promoting a robust and compliant banking system in India.
[RBI]