RBI imposes monetary penalty on The Davanagere District Central Co-operative Bank Limited, Karnataka

Case Brief

By an order dated March 24, 2026, RBI imposed a monetary penalty on The Davanagere District Central Co-operative Bank Limited, Karnataka. The action was taken after a NABARD statutory inspection and a subsequent show-cause process, and RBI sustained charges that the bank had held shares in other co-operative societies in contravention of the Banking Regulation Act, 1949, allotted multiple customer identification codes instead of UCICs, and failed to upload 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.