Recorded RBI impact
Fine: Rs 10,000
Monetary penalty · Fresh imposition
Published by RBI
22 May 2025
Case Brief
RBI imposed a monetary penalty on The Aska Central Co-operative Bank Ltd., Aska, Odisha by order dated May 20, 2025. The action followed a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2024, which found non-compliance with RBI directions on membership of Credit Information Companies by co-operative banks. RBI concluded that the bank had failed to furnish credit information of its customers to any Credit Information Company, and imposed the penalty under the Credit Information Companies (Regulation) Act, 2005.
Why RBI Acted
RBI imposed a monetary penalty after supervisory findings showed non-compliance with RBI directions on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. The bank was found to have failed to furnish credit information of its customers to any CIC, and the penalty was imposed under Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
Operating Impact
The bank must bear the monetary penalty, but the release does not impose any additional operational restriction. The action signals regulatory non-compliance and leaves open the possibility of further action by RBI if warranted.
Regulatory Basis
- Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005
Action Facts
- Primary Impact
- Fine: Rs 10,000
- Order Date
- 20 May 2025
- Effective From
- 20 May 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank