RBI imposes monetary penalty on The Chikhli Urban Co-operative Bank Limited, Chikhli, Maharashtra

Case Brief

RBI, by order dated July 8, 2026, imposed a monetary penalty on The Chikhli Urban Co-operative Bank Limited, Chikhli, Maharashtra. The penalty was imposed for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and for non-compliance with RBI directions on 'Finance for Housing Schemes – UCBs' and 'Know Your Customer (KYC)'. RBI said the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period, sanctioned loans to builders/contractors for acquisition of land, and failed to put in place robust software for effective identification and reporting of suspicious transactions.