RBI imposes monetary penalty on Parbhani District Central Cooperative Bank Ltd., Maharashtra

Case Brief

By an order dated October 14, 2025, RBI imposed a monetary penalty of ₹1.50 lakh on Parbhani District Central Cooperative Bank Ltd., Maharashtra. The penalty was imposed after supervisory findings from a NABARD statutory inspection (with reference to financial position as on March 31, 2024) showed contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI's KYC directions. RBI said the sustained charges included sanctioning certain director-related loans and failing to implement robust software to flag transactions inconsistent with customers' risk categorisation and updated profiles, which affected suspicious transaction monitoring and reporting. The penalty was imposed under Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the BR Act.