Recorded RBI impact
Fine: Rs 2.25 L
Monetary penalty · Fresh imposition
Published by RBI
29 Sept 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.25 lakh on Beed District Central Co-operative Bank Ltd., Maharashtra, by order dated September 25, 2025. The penalty was based on contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on Membership of Credit Information Companies (CICs) by Co-operative Banks and on KYC. RBI stated that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, failed to submit credit information of its customers to all four CICs, and failed to carry out requisite customer due diligence while opening certain account-based relationships. The action was taken after NABARD conducted the statutory inspection with reference to the bank’s financial position as on March 31, 2024, and after RBI considered the bank’s reply and submissions.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection found the bank had contravened provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and had not complied with RBI directions on Membership of Credit Information Companies (CICs) by Co-operative Banks and on KYC. The sustained charges included failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, failure to submit credit information of customers to all four CICs, and failure to undertake required customer due diligence while establishing account-based relationships in certain accounts. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act and Section 25 of the CIC Regulation Act, 2005.
Operating Impact
The bank must absorb the penalty and address the underlying compliance gaps in KYC/CDD, CIC reporting, and unclaimed-deposit transfers. The order does not itself restrict operations, but it signals continuing supervisory scrutiny and the possibility of further RBI action if deficiencies persist. The immediate direct impact is on the bank; indirectly, customers and credit information ecosystems are affected by the compliance failures described.
Regulatory Basis
- Section 26A read with Section 56 of the Banking Regulation Act, 1949
- section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act
- Section 25 of the Credit Information Companies (Regulation) Act, 2005
Action Facts
- Primary Impact
- Fine: Rs 2.25 L
- Order Date
- 25 Sept 2025
- Effective From
- 25 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank