RBI imposes monetary penalty on The Dakshin Dinajpur District Central Co-operative Bank Limited, West Bengal

Case Brief

By an order dated September 02, 2025, RBI imposed a monetary penalty of ₹5.50 lakh on The Dakshin Dinajpur District Central Co-operative Bank Limited, West Bengal. The penalty was levied for non-compliance with RBI directions on Know Your Customer (KYC), following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2024. RBI found that the bank had not put in place a system for periodic review of risk categorisation of accounts at least once in six months and had not uploaded customer KYC records to the Central KYC Records Registry 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.