RBI has imposed a fine on a bank. It is accused of breaking the rules. The certificate of registration of a company has also been canceled. Let’s know why the central bank took this step and what will be its effect on the customers?
The Reserve Bank of India has imposed a monetary penalty on a cooperative bank located in Mumbai, Maharashtra for non-compliance with the rules related to KYC and SAF. The central bank has taken this step under the provisions of sections 46(4)(i) and 56 as well as 47A (1)(c) of the BR Act.
RBI has imposed a fine of Rs 2.50 lakh on Kunbi Sahakari Bank Limited, Mumbai Maharashtra. Violations of the rules were revealed during an inspection conducted in relation to the financial position of the bank on March 31, 2024. The Reserve Bank of India (RBI) decided to impose a monetary penalty based on the response received from the bank on the show cause notice and the presentations made during the hearing. An order has been issued on 27 May 2025 regarding the action.
The bank violated these rules
According to the notice, the bank sanctioned new loans and advances, which were not backed by collateral security of FD/NSC/KVP/insurance policies. In some cases, the single risk limit applicable for new loans and advances was also violated. It also failed to comply with the instructions issued under SAF. The bank also failed to do a periodic review of the risk classification of some accounts as per the prescribed period. However, this action will not affect the transactions or agreements between the customer and the bank.
The license of these companies was canceled
The Reserve Bank of India has canceled the license (certificate of registration) of M/s N/Y Leasing Private Limited. The NBFC violated the guidelines issued by RBI on outsourcing of financial services in its digital lending operations. Outsourcing several core functions such as customer onboarding, due diligence, disbursement of loans, collection of repayments etc. as well as KYC verification to a service provider also violated norms relating to outsourcing of financial services.
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