Recorded RBI impact
Fine: Rs 1.50 L
Monetary penalty · Fresh imposition
Published by RBI
24 Nov 2025
Case Brief
RBI, by order dated November 20, 2025, imposed a monetary penalty of Rs 1.50 lakh on The District Co-operative Central Bank Limited, Kurnool, Andhra Pradesh. The action followed a statutory inspection by NABARD and a show-cause process that found contraventions of Sections 20 read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI’s KYC directions. RBI sustained charges that the bank sanctioned loans to its directors and failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection and show-cause process found that the bank had contravened Sections 20 read with Section 56 of the Banking Regulation Act, 1949 and had not complied with RBI directions on Know Your Customer (KYC). The sustained charges were granting loans to directors and failing to upload KYC records of customers onto 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 BR Act.
Operating Impact
The bank must absorb the monetary penalty and continue complying with Banking Regulation Act requirements and RBI’s KYC directions. The order does not itself invalidate customer transactions, but RBI noted that additional action may still be initiated separately.
Regulatory Basis
- Sections 20 read with Section 56 of the Banking Regulation Act, 1949
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.50 L
- Order Date
- 20 Nov 2025
- Effective From
- 20 Nov 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank