Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
10 Aug 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on The Amravati District Central Co-operative Bank Ltd., Maharashtra. The penalty was imposed after supervisory findings and a show-cause process, and RBI held that the bank had not complied with certain directions on KYC and on ensuring reasonableness of bank charges and charges levied for sending SMS alerts. RBI found that the bank had allotted multiple customer identification codes instead of a UCIC for some customers and had levied SMS alert charges without sending SMS to certain customers.
Why RBI Acted
RBI imposed a monetary penalty on The Amravati District Central Co-operative Bank Ltd., Maharashtra under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty followed NABARD's statutory inspection with reference to the bank's financial position as on March 31, 2025, supervisory findings of non-compliance with RBI directions, and a show-cause process. RBI sustained charges that the bank had allotted multiple customer identification codes to certain customers instead of a Unique Customer Identification Code (UCIC) for each customer, and had levied SMS alert charges without sending SMS to certain customers.
Operating Impact
The bank must absorb the monetary penalty and remain exposed to any other action RBI may initiate separately. The release does not impose an operational restriction, but it underscores continuing compliance obligations around KYC, customer identification, and charging customers only in line with RBI directions.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 6 Aug 2026
- Effective From
- 6 Aug 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank