The Reserve Bank of India (RBI) has fined Shri Ganesh Sahakari Bank Limited, located in Nashik, Maharashtra, ₹1 lakh (one lakh rupees). This order was passed on April 3, 2025.
Why was the fine imposed?
RBI found that the bank broke some rules under the Banking Regulation Act, 1949. It also didn’t follow RBI’s instructions related to Know Your Customer (KYC) guidelines. KYC rules help banks verify the identity of their customers to prevent fraud.
How did RBI find this out?
RBI had inspected the bank’s records as of March 31, 2024. During this inspection, RBI found that the bank had:
- Not transferred unclaimed money (like old deposits that customers have not claimed) to the Depositor Education and Awareness Fund (DEAF) on time. This fund is meant to use unclaimed money for public awareness and benefit.
- Not updated KYC information regularly for its customers. As per the rules, banks must update customer details from time to time.
- Not reviewed customer risk categories every six months. Banks must check how risky an account is (for example, in terms of fraud or misuse) and keep reviewing it regularly.
What did RBI do next?
RBI sent a notice to the bank asking why a penalty should not be imposed. After reviewing the bank’s reply and giving them a chance to explain in a personal meeting, RBI decided that the bank’s mistakes were serious enough to impose the fine.
Important note:
This fine is only for not following the rules. It does not mean that any transaction or agreement between the bank and its customers is illegal or invalid. Also, this fine doesn’t stop RBI from taking other action if needed in the future.
