RBI imposes monetary penalty on The Angul United Central Co-operative Bank Ltd., Odisha

The RBI, through an order dated June 03, 2024, levied a ₹1,00,000 penalty on The Angul United Central Co-operative Bank Ltd., Odisha for breaching the KYC Master Direction of 2016. The penalty was imposed under sections 47 A (1) (c), 46 (4) (i), and 56 of the Banking Regulation Act, 1949. \r

Following a NABARD inspection, the bank was found non-compliant with RBI directives regarding KYC procedures. Despite being notified and given a chance to respond, the bank failed to implement a risk-based approach for KYC updates. This penalty addresses regulatory deficiencies and doesn't comment on specific transactions. \r

Further regulatory actions against the bank remain possible.