The Chikhli Urban Co-operative Bank Limited, Chikhli, Maharashtra

RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after supervisory inspection findings showed contravention of statutory provisions and non-compliance with RBI directions. The sustained charges included failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period, sanctioning loans to builders/contractors for acquisition of land, and failure to put in place robust software for effective identification and reporting of suspicious transactions.

The bank must bear the Rs 13 lakh penalty; the order does not itself impose an operating restriction, but it highlights supervisory deficiencies that may expose the bank to further RBI action. Customers are not directly restricted by this order, though the bank is expected to strengthen compliance, KYC controls, lending practices, and suspicious transaction reporting.