Now Reading: RBI fines Amravati District Co-op Bank Rs 50,000 for KYC lapses
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RBI fines Amravati District Co-op Bank Rs 50,000 for KYC lapses
The Reserve Bank of India imposed a Rs 50,000 penalty on The Amravati District Central Co-operative Bank for failing to follow KYC norms and charging SMS alert fees without actually sending alerts.…
The Story in Brief
The Reserve Bank of India imposed a Rs 50,000 penalty on The Amravati District Central Co-operative Bank for failing to follow KYC norms and charging SMS alert fees without actually sending alerts. The action follows a NABARD inspection that found the bank assigned multiple customer identification codes instead of a single Unique Customer Identification Code and levied SMS charges without providing the service.
The RBI issued a show-cause notice and considered the bank's reply before imposing the penalty under the Banking Regulation Act. The regulator clarified the fine is for regulatory non-compliance and does not invalidate any customer transactions.
The Indian Opinion
The fine is too small to deter bigger banks from cutting corners, but the RBI's focus on UCIC and SMS charges shows a welcome attention to consumer rights. The real test is whether this penalty, and others like it, will nudge cooperative banks to invest in compliance rather than treat fines as cost of business. Which bank will be next on the RBI's list?
Source: rbi.org.in
This story was synthesised by AI from the source linked above.
