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The Reserve Bank of India (RBI) has levied a monetary penalty of ₹1 lakh on Jila Sahakari Kendriya Bank Maryadit, Chhatarpur, Madhya Pradesh for non-compliance with the Banking Regulation Act, 1949, and RBI directions on Know Your Customer (KYC) norms. The penalty was imposed under the powers granted to RBI under the Banking Regulation Act, 1949, due to the bank’s failure to adhere to regulatory requirements.
An inspection of the bank’s financial position as of March 31, 2021, revealed that the bank had delayed submission of statutory/OSS returns to RBI and NABARD and had not carried out risk categorization of its customers, violating the prescribed KYC and regulatory norms. A show-cause notice was issued to the bank to explain why a penalty should not be imposed.
After reviewing the bank’s responses and oral submissions during the personal hearing, RBI concluded that the non-compliance charges were substantiated, warranting the imposition of the monetary penalty. This action addresses deficiencies in regulatory compliance and does not comment on the validity of any transactions or agreements entered into by the bank with its customers.
[RBI]