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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.10 lakh on Kolkata Police Co-operative Bank Ltd., Kolkata, West Bengal for non-compliance with provisions of the RBI (Know Your Customer (KYC)) Directions, 2016. The penalty has been levied under Section 47A (1)(c) read with Sections 46 (4)(i) and 56 of the Banking Regulation Act, 1949, following the bank’s failure to adhere to RBI directives.
The inspection report of the bank as of March 31, 2022, revealed that the bank did not conduct periodic review of risk categorization of accounts and failed to allot Unique Customer Identification Codes (UCIC) as required under KYC guidelines. Based on these findings, RBI issued a show-cause notice to the bank.
After considering the bank’s reply, additional submissions, and arguments presented during the personal hearing, RBI concluded that the charges of non-compliance were substantiated, warranting the imposition of the monetary penalty.
This action underscores RBI’s commitment to ensuring strict adherence to regulatory and KYC norms by cooperative banks.
[RBI]