The Reserve Bank of India (RBI) has imposed monetary penalties on two Maharashtra-based cooperative banks for regulatory compliance lapses involving Know Your Customer (KYC) and credit information reporting.
The RBI has levied a Rs 20,000 penalty on the Mumbai District Central Co-operative Bank Ltd. following a NABARD inspection based on its financial position as of March 31, 2025. The bank was found to have failed to upload customers’ KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
Separately, the RBI imposed a Rs 2.03 lakh penalty on Jai Bhawani Sahakari Bank Ltd., Pune, following its inspection of the bank. The lender was found to have failed to report borrowers’ credit information to all Credit Information Companies (CICs) and review account risk categorisation at the prescribed intervals.
The RBI said the penalties relate to regulatory compliance deficiencies and do not question the validity of transactions or agreements entered into by the banks with their customers. The action is also without prejudice to any further measures that may be initiated by the central bank.
