RBI imposes monetary penalty on The Hassan District Co-operative Central Bank Ltd, Karnataka

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on The Hassan District Co-operative Central Bank Ltd, Karnataka, following supervisory findings from a NABARD statutory inspection. RBI said the bank contravened Section 19 read with Section 56 of the Banking Regulation Act, 1949 by holding shares in another co-operative society, and also failed to upload customer KYC records to CKYCR within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act, and RBI clarified that the action is based on regulatory deficiencies and does not pronounce on the validity of any transaction or agreement.