Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
3 Oct 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on The Hassan District Co-operative Central Bank Ltd, Karnataka, following supervisory findings from a NABARD statutory inspection. RBI said the bank contravened Section 19 read with Section 56 of the Banking Regulation Act, 1949 by holding shares in another co-operative society, and also failed to upload customer KYC records to CKYCR 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, and RBI clarified that the action is based on regulatory deficiencies and does not pronounce on the validity of any transaction or agreement.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection by NABARD and subsequent supervisory proceedings. The bank was found to have contravened Section 19 read with Section 56 of the Banking Regulation Act, 1949 by holding shares in another co-operative society, and to have failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline, amounting to non-compliance with RBI’s KYC directions. 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 BR Act requirements and RBI KYC directions. The order does not itself impose an operating restriction, but RBI has indicated that additional action may still be initiated if warranted.
Regulatory Basis
- Section 19 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 1.00 L
- Order Date
- 29 Sept 2025
- Effective From
- 29 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank