RBI imposes monetary penalty on The Sonepat Central Cooperative Bank Ltd., Haryana
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹25,000 on The Sonepat Central Cooperative Bank Ltd., Haryana, for failing to follow certain regulatory directions. The penalty was announced through an order dated July 30, 2025, and is related to the bank’s non-compliance with RBI’s instructions regarding the Membership of Credit Information Companies (CICs) by cooperative banks.
This action has been taken under the legal provisions of the Credit Information Companies (Regulation) Act, 2005, specifically Section 25 read with Section 23. These laws give RBI the authority to take regulatory action when a bank does not comply with required norms.
The issue came to light after the National Bank for Agriculture and Rural Development (NABARD) conducted a statutory inspection of the bank, based on its financial status as of March 31, 2024. During this inspection, it was found that the bank had not submitted its borrowers’ credit information to all four licensed Credit Information Companies, as mandated by RBI.
As a result, RBI issued a notice to the bank asking it to explain why a penalty should not be imposed. After reviewing the bank’s written explanation and hearing its representatives in a personal hearing, RBI concluded that the bank’s failure to share credit data with all CICs was a clear violation of the regulatory requirement.
RBI clarified that this penalty is strictly for lapses in regulatory compliance. It does not question the legitimacy of any transaction between the bank and its customers. Also, this penalty does not prevent RBI from taking any further action against the bank, if needed, in the future.
