Vadodara: The Reserve Bank of India (RBI) on Monday announced that, by an order dated February 19, 2025, it has imposed a monetary penalty of ₹25,000 on Mahila Sahakari Bank Ltd. in Vadodara for non-compliance with certain directions issued by the RBI on ‘Know Your Customer (KYC)’.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as of March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, oral submissions made during the personal hearing, and the examination of additional submissions made by it, RBI found, inter alia, that the following charge against the bank was sustained, warranting the imposition of a monetary penalty:

The bank had failed to upload the KYC records of customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. DeshGujarat