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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.10 lakh on Birbhum District Central Co-operative Bank Ltd. for non-compliance with directions on Know Your Customer (KYC) and Membership of Credit Information Companies (CICs).
The penalty has been levied under the powers vested in RBI through Section 47-A (1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
The action follows a statutory inspection conducted by NABARD, which highlighted several regulatory lapses, including failure to periodically review risk categorisation of accounts, incomplete risk categorisation, and non-membership of three out of four CICs.
After considering the bank’s response and oral submissions during the personal hearing, RBI concluded that the non-compliance was substantiated, warranting the imposition of the penalty.
RBI clarified that this action is aimed at enforcing regulatory compliance and does not affect the validity of any transactions or agreements entered into by the bank with its customers.
[RBI]