Recorded RBI impact
Fine: Rs 25,000
Monetary penalty · Fresh imposition
Published by RBI
17 Feb 2025
Case Brief
By an order dated February 13, 2025, RBI imposed a monetary penalty of ₹25,000 on The Dhule and Nandurbar District Central Co-operative Bank Ltd., Dhule, Maharashtra. The penalty followed NABARD’s statutory inspection and RBI’s supervisory findings that the bank had not complied with RBI directions on membership of Credit Information Companies by co-operative banks, specifically that it failed to submit credit information of its borrowers to any of the four CICs. The penalty was imposed under Section 25 of the Credit Information Companies (Regulation) Act, 2005, after a show-cause notice, the bank’s reply, oral submissions, and additional submissions were considered.
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 sustained charge was that the bank failed to submit credit information of its borrowers to any of the four CICs. The penalty was imposed under Section 25 of the Credit Information Companies (Regulation) Act, 2005, following a show-cause notice, reply, oral submissions, and additional submissions from the bank.
Operating Impact
The bank must absorb the monetary penalty and continue complying with RBI directions on CIC membership and credit information reporting. The action does not by itself alter customer transactions, but it signals ongoing supervisory scrutiny and leaves open the possibility of further RBI action if non-compliance continues.
Regulatory Basis
- Section 25 of the Credit Information Companies (Regulation) Act, 2005
Action Facts
- Primary Impact
- Fine: Rs 25,000
- Order Date
- 13 Feb 2025
- Effective From
- 13 Feb 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank