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The Reserve Bank of India (RBI) imposed a monetary penalty of ₹26,91,330 on The Andhra Pradesh State Co-operative Bank Limited, Vijayawada, on December 14, 2022, for non-compliance with RBI’s Know Your Customer (KYC) Directions, 2016, membership norms for Credit Information Companies (CICs), and NABARD’s guidelines on fraud classification, reporting, and monitoring. The penalty was imposed under Sections 25(1)(iii) and 23(4) of the Credit Information Companies (Regulation) Act, 2005, and Sections 47A (1)(c), 46(4)(i), and 56 of the Banking Regulation Act, 1949.
A statutory inspection conducted 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 detecting and reporting suspicious transactions, did not submit data (including historical data) to all four CICs, and did not report fraud cases to NABARD within the stipulated timelines.
After reviewing the bank’s responses and oral submissions during a personal hearing, RBI concluded that the non-compliance was substantiated and warranted the imposition of the monetary penalty.
[RBI}