The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.50 lakh on the Rohika Central Co-operative Bank Limited, Bihar for violations of regulatory provisions and non-compliance with its directions.
According to the RBI, the penalty was levied under the provisions of the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005. The action follows findings from a statutory inspection carried out by NABARD as on March 31, 2024.
The inspection and subsequent review revealed that the bank had failed to dispose of certain non-banking assets within the prescribed period, did not submit credit information of its customers to all four Credit Information Companies, and delayed uploading KYC records to the Central KYC Records Registry (CKYCR).
The regulator noted that the penalty was imposed after considering the bank’s response to a show-cause notice and submissions made during a personal hearing.
RBI clarified that the action is based on deficiencies in regulatory compliance and is not intended to question the validity of customer transactions or agreements.
