Reserve Bank of IndiaCivil Money Penaltylow

The Amravati District Central Co-operative Bank Ltd., Maharashtra

Amravati, Maharashtra, India

, Maharashtra. The bank assigned multiple customer identification codes to certain customers instead of issuing a unique code to each, breaching RBI directions on KYC. It also levied SMS alert charges on customers without actually sending the messages.

NABARD conducted the statutory inspection with reference to the bank's financial position as on Mar 31, 2025. After issuing a show-cause notice, hearing the bank's reply and oral arguments, the RBI sustained the charges. The RBI stated the penalty addresses regulatory compliance deficiencies and does not affect the validity of any customer transaction or agreement.

Implications
  1. Reinforces the importance of unique customer identification and KYC compliance for banks, including cooperative banks
  2. Highlights regulatory scrutiny of fee practices where banks charge for services not actually rendered
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