The Davanagere District Central Co-operative Bank Limited, Karnataka

After a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2025, RBI issued a show-cause notice and, after considering the bank’s reply and oral submissions, found charges sustained. The bank had held shares in other co-operative societies in contravention of the BR Act, allotted multiple customer identification codes instead of a Unique Customer Identification Code (UCIC) to certain customers, and failed to upload KYC records to CKYCR within the prescribed timeline. RBI imposed the monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.

The bank must absorb the monetary penalty and continue operating, but the order signals supervisory non-compliance that could expose it to further regulatory action if deficiencies persist. Customers are not directly restricted by this order, though the bank is expected to strengthen KYC and statutory compliance processes going forward.