Action on Dumka Central Co-operative Bank
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh each on 16 Central Co-operative Banks. The penalties were issued under Section 47(A) read with Section 46 of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after RBI found non-adherence to KYC norms and AML standards substantiated, despite the banks' replies and personal submissions.
RBI imposed a monetary penalty of Rs 5 lakh each on 16 Central Co-operative Banks under Section 47(A) read with Section 46 of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for non-adherence to Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards. The banks had received show-cause notices, submitted written replies and personal submissions, but RBI concluded the violations were substantiated and warranted penalties.
Severity Assessment
A monetary penalty of Rs 5 lakh falls in severity band 2, with no additional operational restriction beyond the fine.
Each of the 16 co-operative banks must absorb the monetary penalty; the order does not describe any additional business restriction or licence action. The immediate impact is financial and compliance-related, with RBI signaling deficiencies in KYC/AML controls.
Published as The Dumka Central Co-operative Bank Ltd.
Published as The Gumla Simdega Central Co-operative Bank Ltd.
Published as The Dhanbad Central Co-operative Bank Ltd.
Published as The Rewari Central Co-operative Bank Ltd.
Published as The Mansa Central Co-operative Bank Ltd.
Published as The Jind Central Co-operative Bank Ltd.
Published as The Gopalganj Central Co-operative Bank Ltd.
Published as Ajmer Central Co-operative Bank Ltd.
Published as Hanumangarh Kendriya Sahakari Bank Ltd.
Published as The Central Co-operative Bank Ltd., Bikaner
Published as The Sirohi Central Co-operative Bank Ltd.
Published as The Bundi Central Co-operative Bank Ltd.
Published as The Boudh Co-operative Central Bank Ltd.
Published as Bhawanipatna Central Co-operative Bank
Published as The Sambalpur District Co-operative Central Bank Ltd.
© 2026 RegOversight by OddVector