RBI imposes monetary penalty on The Kancheepuram Central Co-operative Bank Ltd., Kancheepuram, Tamil Nadu

The Reserve Bank of India (RBI), in an order dated June 11, 2024, has imposed a monetary penalty of ₹50,000/- on The Kancheepuram Central Co-operative Bank Ltd., Tamil Nadu. \r

This penalty was levied for the bank's non-compliance with directions issued by the National Bank for Agriculture and Rural Development (NABARD) on ‘Frauds - Guidelines for Classification, Reporting and Monitoring’. RBI exercised its powers under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. \r

The penalty follows a statutory inspection conducted by NABARD based on the bank's financial position as of March 31, 2023. RBI's decision was influenced by findings of delay in reporting fraud to NABARD, despite the bank's response and submissions during the proceedings. The penalty does not question the bank's transactions but allows for further actions by RBI if necessary.