What changed
RBI issued a penalty order on June 29, 2026, against the bank for non-compliance with KYC directions. The statutory inspection as of March 31, 2025, revealed the bank did not upload KYC records to CKYCR on time. After show-cause notice and personal hearing, the charge was sustained.
What it means for you
This penalty underscores RBI's strict enforcement of KYC compliance, especially timely CKYCR reporting. Urban cooperative banks must ensure automated or manual uploads within mandated timelines to avoid regulatory action. The fine is small but signals zero tolerance for procedural lapses.
What you must do
- Review your CKYCR upload process to ensure records are submitted within RBI-prescribed timelines.
- Conduct an internal audit of KYC record submission dates against regulatory deadlines.
- Train staff on CKYCR requirements and escalation procedures for delays.
- Implement automated alerts for pending uploads to avoid manual oversight.
Who it affects
Dharmavir Sambhaji Urban Cooperative Bank Ltd., Pune, All urban cooperative banks subject to RBI KYC directions, Compliance and KYC operations teams in cooperative banks
What was the specific violation?
The bank failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline, as found during RBI's statutory inspection.
What is the penalty amount and legal basis?
The penalty is ₹10,000, imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Does this penalty affect customer transactions?
No, the action is based on regulatory compliance deficiencies and does not question the validity of any customer transaction or agreement.