Reserve Bank of India (RBI) imposes Rs 99.30 lakh penalty on Jammu and Kashmir Bank

Key facts

• The Reserve Bank of India (RBI) imposed a fine of Rs 99.30 lakh on Jammu and Kashmir Bank.
• The penalty was for failing to comply with directions regarding grievance handling, customer communication, KYC verification, and the transfer of unclaimed deposits.
• The fines were based on the statutory inspection of the bank's financial position as of March 2024.
• The inspection found that certain complaints were not escalated to the Internal Ombudsman.
• The bank did not send final resolution letters to customers after closing complaints.
• The bank was not using face-verification technology for video-based customer identification.
• The bank was not verifying customers' financial information furnished at the time of onboarding.
• There was a delay in the transfer of eligible unclaimed deposits to the Depositor Education and Awareness Fund.