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The Bhandara District Central Co-operative Bank Limited, Bhandara, Maharashtra

Co-operative bankBhandara, Maharashtra

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 13,000

Monetary penalty · Fresh imposition

S1

Published by RBI

20 Sept 2021

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹13,000 on The Bhandara District Central Co-operative Bank Limited, Bhandara, Maharashtra by order dated September 20, 2021. RBI said the bank had contravened / not complied with the Credit Information Companies (Regulation) Act, 2005 and RBI directions on membership of Credit Information Companies by Co-operative Banks. The action followed an inspection report based on the bank’s financial position as on March 31, 2019, a show-cause notice, and RBI’s conclusion that the non-compliance was substantiated. RBI clarified that the penalty was imposed for regulatory non-compliance and was not intended to pronounce on the validity of any transaction or agreement with customers.

Why RBI Acted

Licensing breachReporting & disclosure

Based on the inspection report of the bank as on March 31, 2019, RBI found contravention/non-compliance with provisions of the Credit Information Companies (Regulation) Act, 2005 and RBI directions on membership of Credit Information Companies by Co-operative Banks. After issuing a show-cause notice and considering the bank's replies, RBI concluded that the charge of non-compliance was substantiated and imposed a monetary penalty under section 25(1)(iii) read with section 23(4) of the CIC Act.

Operating Impact

The bank must absorb the penalty and address the compliance gaps identified by RBI. The release does not impose any ongoing operational restriction, but it signals regulatory scrutiny over adherence to CIC Act requirements and RBI membership directions for co-operative banks.

Regulatory Basis

  • section 25 (1) (iii) read with section 23 (4) of the CIC Act
  • Credit Information Companies (Regulation) Act, 2005
  • RBI directions on membership of Credit Information Companies by Co-operative Banks

Action Facts

Primary Impact
Fine: Rs 13,000
Order Date
20 Sept 2021
Effective From
20 Sept 2021
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank