The Reserve Bank of India (RBI) has imposed a monetary penalty of ?2 lakh on Makarpura Industrial Estate Co-operative Bank Ltd., Vadodara, for non-compliance with its directions on Know Your Customer (KYC) norms and cyber security frameworks for urban cooperative banks.
The action follows an inspection of the bank’s financial position as of March 31, 2024, which revealed lapses including failure to periodically review risk categorisation of accounts and implement certain prescribed cyber security controls. RBI clarified the penalty is for regulatory deficiencies and does not question the validity of the bank’s customer transactions or agreements.