The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.40 lakh (Sixty-one lakh and forty thousand rupees) on RBL Bank Limited for failing to comply with certain ‘Know Your Customer’ (KYC) regulations. This penalty, issued on November 19, 2024, was enforced under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
RBI conducted a Statutory Inspection for Supervisory Evaluation of the bank, focusing on its financial position as of March 31, 2022, and March 31, 2023. The inspection findings revealed non-compliance with RBI’s KYC guidelines, prompting the RBI to issue a show-cause notice to the bank. The notice asked the bank to explain why a penalty should not be imposed for its failure to adhere to the KYC regulations.
After reviewing the bank’s response and oral submissions made during a personal hearing, RBI determined that the following violations were sustained, leading to the imposition of the penalty:
- The bank failed to obtain a prescribed Officially Valid Document (OVD) when opening certain credit card accounts.
- The bank issued multiple Customer Identification Codes (CICs) to some customers instead of a Unique Customer Identification Code (UCIC) for each individual.
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It is important to note that the penalty is based solely on deficiencies in statutory and regulatory compliance and does not address the validity of any transactions or agreements made between the bank and its customers. Additionally, this penalty is without prejudice to any further actions that the RBI may take against the bank in the future.
