Panihati Co-operative Bank Ltd

RBI imposed a Rs 2.5 lakh penalty on Panihati Co-operative Bank Ltd. for non-compliance with exposure norms and KYC directions. The action followed inspection findings and a show-cause process.

The bank must bear the monetary penalty, but the release does not indicate any operational restriction or suspension. The action signals ongoing compliance expectations around exposure limits and KYC documentation for the bank's customers and counterparties.

• Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949

RBI imposed a ₹2 lakh penalty on The Panihati Co-operative Bank Ltd. for violating RBI directions and KYC/AML/PMLA instructions.

The bank must bear a financial penalty of ₹2 lakh; the order does not describe any new operating restriction or licence action. The finding also signals regulatory non-compliance around KYC/AML/PMLA and prior RBI directions, which may affect supervisory scrutiny going forward.

• Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

RBI extended the operating restrictions on The Panihati Co-operative Bank Ltd. for another six months. The bank remains subject to caps on lending, deposits, payments and asset disposal.

The bank must continue operating under RBI-imposed restrictions through October 23, 2015 unless modified earlier. Its ability to lend, raise funds, accept fresh deposits, make payments and dispose of assets remains curtailed, and depositors are subject to the ₹1,000 withdrawal cap per account subject to conditions.

• Section 35A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949