RBIMonetary Penaltylow

The Amravati District Central Co-operative Bank Ltd.

Amravati, Maharashtra, India

, Maharashtra. The bank violated RBI directions on Know Your Customer norms and the reasonableness of charges for SMS alerts. Inspectors found the bank had assigned multiple customer identification codes to certain customers rather than issuing a unique code to each.

It also charged customers for SMS alerts it never sent. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. NABARD conducted the statutory inspection with reference to the bank's financial position as on Mar 31, 2025.

The RBI stated that the penalty does not affect the validity of any customer transaction or agreement.

Implications
  1. Demonstrates global regulatory focus on KYC compliance at banks of all sizes
  2. Relevant context for BaaS providers operating in India or partnering with Indian cooperative banks
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