Case Brief
What Happened
RBI, by order dated September 01, 2025, imposed a monetary penalty of ₹2.02 lakh on The Pataliputra Central Co-operative Bank Ltd., Bihar. The penalty followed supervisory findings from a NABARD inspection and related correspondence showing non-compliance with RBI directions on Know Your Customer (KYC) and membership of Credit Information Companies (CICs) by co-operative banks. RBI said the bank failed to maintain a system for periodic review of risk categorisation of accounts at least once every six months and failed to submit credit information of its customers to three credit information companies. The penalty was imposed under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.