RBI imposes monetary penalty on The Boudh Co-operative Central Bank Limited, Odisha

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10,000 on The Boudh Co-operative Central Bank Ltd., Odisha. The action followed a statutory inspection by NABARD and a show-cause notice, after which RBI concluded that the bank had violated its directions on membership of Credit Information Companies by co-operative banks. The specific sustained lapse was the failure to submit customer credit information to three Credit Information Companies. RBI stated that the penalty was imposed under Section 25 read with Section 23 of the Credit Information Companies (Regulation Act), 2005, and clarified that the action does not pronounce on the validity of any transaction or agreement and is without prejudice to any other action that may be taken.