The Andaman & Nicobar State Co-operative Bank Ltd

RBI imposed a ₹16 lakh penalty on Andaman & Nicobar State Co-operative Bank Limited for KYC non-compliance and delayed transfer of eligible unclaimed amounts to the Depositor Education and Awareness Fund.

The bank must absorb the monetary penalty and continue complying with RBI’s KYC and depositor-fund transfer requirements. The action does not itself impose an operating restriction, but it signals continued supervisory scrutiny and leaves open the possibility of further RBI action for the same or related compliance failures.

• 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

RBI imposed a ₹5 lakh penalty on The Andaman & Nicobar State Co-operative Bank Ltd. for non-compliance with statutory provisions and RBI directions. The issue involved unsecured loans sanctioned to directors.

The bank must absorb the monetary penalty and address the compliance lapse identified by RBI. The action has no stated operational restriction on depositors or customers, but it highlights the need for stronger adherence to lending and governance norms, especially around loans to directors.

• Section 20 read with Section 56 of BR Act, 1949 (AACS)
• Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949