The Katihar District Central Co-operative Bank Limited, Bihar

Following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2024, RBI found sustained charges of non-compliance with RBI directions on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. The bank contravened Section 20 read with Section 56 of the Banking Regulation Act, 1949 by sanctioning loans to its director, and it also failed to submit credit information of its customers to two Credit Information Companies. RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act and Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005.

The bank must absorb the penalty and address the underlying compliance gaps around related-party lending and credit information reporting. RBI noted the penalty is without prejudice to any further action that may be initiated.