The Reserve Bank of India (RBI) has imposed monetary penalties on three co-operative banks for non-compliance with regulatory directives. These penalties were levied under the provisions of the Banking Regulation Act, 1949 (BR Act) based on findings from statutory inspections conducted by the National Bank for Agriculture and Rural Development (NABARD) and RBI.
Penalty on The Gulbarga and Yadgir District Co-operative Central Bank Ltd., Karnataka
By an order dated February 18, 2025, the RBI has imposed a ₹50,000 penalty on The Gulbarga and Yadgir District Co-operative Central Bank Ltd., Karnataka, for failing to comply with NABARD’s directions on the Offsite Surveillance System – Revision of Due Dates for Submission of OSS/FMS Returns.
- Violation: The bank failed to submit statutory returns to NABARD within the prescribed timeline.
- Legal Basis: The penalty was imposed under Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the BR Act, 1949.
Penalty on The Guntur District Co-operative Central Bank Ltd., Andhra Pradesh
On the same date, February 18, 2025, the RBI also penalized The Guntur District Co-operative Central Bank Ltd., Andhra Pradesh, with a ₹50,000 penalty for violating Section 31, read with Section 56 of the BR Act, 1949.
- Violation: The bank failed to publish its accounts and balance sheet for FY 2022-23 and did not submit copies to RBI/NABARD within the prescribed timeline.
- Legal Basis: The penalty was imposed under Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the BR Act, 1949.
Penalty on Mahila Sahakari Bank Ltd., Vadodara, Gujarat
By an order dated February 19, 2025, the RBI imposed a ₹25,000 penalty on Mahila Sahakari Bank Ltd., Vadodara, Gujarat, for non-compliance with RBI’s Know Your Customer (KYC) guidelines.
- Violation: The bank failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the stipulated timeline.
- Legal Basis: The penalty was imposed under Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the BR Act, 1949.
Regulatory Action and Disclaimer
The penalties were imposed due to deficiencies in statutory and regulatory compliance and do not affect the validity of any banking transactions. Additionally, these penalties are without prejudice to any further action that may be taken by RBI against these banks.
The RBI continues to monitor compliance and take necessary enforcement actions to uphold banking regulations and safeguard depositors’ interests.
