RBI imposes monetary penalty on The National Central Co-operative Bank Ltd., Bettiah, Bihar

Case Brief

By an order dated November 13, 2024, RBI imposed a monetary penalty of ₹4.10 lakh on The National Central Co-operative Bank Ltd., Bettiah, Bihar. The penalty was levied for contravention of section 26A read with section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI directions on membership of Credit Information Companies by co-operative banks and the Master Direction on Know Your Customer (KYC) Direction, 2016. RBI said the sustained charges included delayed transfer of eligible unclaimed amounts to the Depositor Education and Awareness Fund, non-submission of credit information of borrowers to three CICs, and failure to risk-categorise certain customers. RBI noted that the penalty was based on deficiencies in regulatory compliance and was without prejudice to any other action that may be initiated.