Recorded RBI impact
Fine: Rs 5.50 L
Monetary penalty · Fresh imposition
Published by RBI
4 Sept 2025
Case Brief
By an order dated September 02, 2025, RBI imposed a monetary penalty of ₹5.50 lakh on The Dakshin Dinajpur District Central Co-operative Bank Limited, West Bengal. The penalty was levied for non-compliance with RBI directions on Know Your Customer (KYC), following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2024. RBI found that the bank had not put in place a system for periodic review of risk categorisation of accounts at least once in six months and had not uploaded customer KYC records to the Central KYC Records Registry within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
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 findings showed non-compliance with RBI directions on Know Your Customer (KYC). The bank had failed to put in place a system for periodic review of risk categorisation of accounts at least once every six months and failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and ensure corrective compliance with KYC requirements going forward, including periodic account-risk reviews and timely CKYCR uploads. The order does not itself restrict operations or customer transactions, but RBI has reserved the right to initiate any further action if needed.
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 5.50 L
- Order Date
- 2 Sept 2025
- Effective From
- 2 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank