Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
25 Jun 2026
Case Brief
RBI, by order dated June 23, 2026, imposed a monetary penalty of ₹1 lakh on The Modern Co-operative Bank Limited, Chalisgaon, Maharashtra. The penalty was based on supervisory findings that the bank breached the prescribed regulatory limit for single borrower exposure and failed to upload customers' KYC records to CKYCR within the prescribed timeline. RBI said the action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank's reply to the show-cause notice.
Why RBI Acted
Following a statutory inspection with reference to the bank's financial position as on March 31, 2025, RBI found sustained charges that the bank had breached the prescribed regulatory limit for single borrower exposure and failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must bear the monetary penalty and remain subject to RBI's ongoing supervisory powers. The order does not by itself invalidate any transaction or agreement, but it signals continued regulatory scrutiny and leaves open the possibility of further action for the same or related compliance lapses.
Regulatory Basis
- 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
- 23 Jun 2026
- Effective From
- 23 Jun 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank