Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.25 lakh on Beed District Central Co-operative Bank Ltd., Maharashtra, by order dated September 25, 2025. The penalty was based on contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on Membership of Credit Information Companies (CICs) by Co-operative Banks and on KYC. RBI stated that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, failed to submit credit information of its customers to all four CICs, and failed to carry out requisite customer due diligence while opening certain account-based relationships. The action was taken after NABARD conducted the statutory inspection with reference to the bank’s financial position as on March 31, 2024, and after RBI considered the bank’s reply and submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 2.25 L
- Entity Type
- Co-operative bank
- Location