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The Reserve Bank of India (RBI) imposed a monetary penalty of ₹30.85 lakh on The Delhi State Cooperative Bank Ltd., New Delhi, on December 14, 2022, for non-compliance with RBI’s Know Your Customer (KYC) Directions, 2016, housing finance norms, and NABARD’s guidelines on fraud classification, reporting, and monitoring. The penalty was imposed under Sections 47A (1)(c), 46(4)(i), and 56 of the Banking Regulation Act, 1949.
A statutory inspection by NABARD with reference to the bank’s financial position as of March 31, 2020, revealed that the bank failed to implement robust software for identifying and reporting suspicious transactions, breached housing finance exposure limits, and did not report fraud cases to NABARD within the prescribed timelines.
Following consideration of the bank’s response and a personal hearing, RBI concluded that the non-compliance was substantiated and warranted the monetary penalty.
[RBI]