RBI imposes monetary penalty on The Ghatal Peoples Co-operative Bank Limited, West Bengal

**Executive Summary** This press release, dated October 16, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹ 5.50 lakh on The Ghatal Peoples Co-operative Bank Limited due to non-compliance with KYC directions issued by RBI. The penalty was issued following a statutory inspection as of March 31, 2024. The order was issued on September 26, 2025. **Key Points / Main Content** * **Penalty Imposition:** * RBI has imposed a monetary penalty of ₹ 5.50 lakh on The Ghatal Peoples Co-operative Bank Limited. * The penalty is for non-compliance with RBI directions on 'Know Your Customer (KYC)'. * The order was issued on September 26, 2025. * The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. * **Basis for Penalty:** * The penalty is based on the statutory inspection of the bank with reference to its financial position as on March 31, 2024, and subsequent findings of non-compliance. * The bank failed to carry out periodic review of risk categorisation of accounts at least once in six months. * The bank failed to upload KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline. * **Disclaimer:** * The action is based on deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. * The imposition of this penalty is without prejudice to any other action that may be initiated by RBI against the bank. **Impact Analysis** **The Ghatal Peoples Co-operative Bank Limited** * **Impact:** Suffers a monetary penalty of ₹ 5.50 lakh, and may face reputational damage. Further, the bank may be subject to additional regulatory actions by the RBI. * **Action Required:** Must pay the monetary penalty. Must enhance its KYC compliance procedures, including the periodic review of risk categorisation of accounts and the timely upload of KYC records to the CKYCR. **Customers of The Ghatal Peoples Co-operative Bank Limited** * **Impact:** Potentially experience stricter KYC verification processes in the future. * **Action Required:** May be required to update their KYC information with the bank.

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