Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
25 Aug 2025
Case Brief
By an order dated August 19, 2025, RBI imposed a monetary penalty of ₹50,000 on The Kalaburagi and Yadgir District Co-operative Central Bank Limited, Karnataka. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following NABARD’s statutory inspection and supervisory findings of non-compliance with RBI’s KYC directions. RBI sustained the charge that the bank had failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
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 inspection findings showed non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank did not upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and remain subject to RBI supervisory oversight. The release does not mention any operational restriction, but it signals continuing compliance expectations around KYC record maintenance and CKYCR uploads; RBI also notes that further action may be initiated separately.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 19 Aug 2025
- Effective From
- 19 Aug 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank