RBI imposes monetary penalty on Andaman & Nicobar State Co-operative Bank Limited

Case Brief

By an order dated August 05, 2025, RBI imposed a monetary penalty of ₹16 lakh on Andaman & Nicobar State Co-operative Bank Limited. The penalty was imposed after supervisory findings and a show-cause process, on the basis of contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI’s KYC directions. RBI said the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time and failed to review the risk categorisation of accounts periodically, at least once in six months.