Latur District Central Co-operative Bank Ltd., Maharashtra

Based on a statutory inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2024, RBI issued a show-cause notice and, after considering the bank’s reply and submissions, held that charges were sustained. The bank was found to have sanctioned and renewed certain director-related loans and failed to upload certain customers’ KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline, constituting contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on Know Your Customer (KYC). RBI imposed a monetary penalty under Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the BR Act.

The bank must absorb the ₹8 lakh penalty and continue to ensure compliance with lending restrictions relating to director-related loans and with KYC/CKYCR reporting timelines. The release does not state any operational ban or suspension, but it signals continued supervisory scrutiny and possible further action if non-compliance persists.