**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.25 lakh on Beed District Central Co-operative Bank Ltd., Maharashtra. The penalty, ordered on September 25, 2025, is for contravention of statutory provisions and non-compliance with RBI directives, specifically related to Credit Information Companies and KYC guidelines.
**Key Points / Main Content**
* **Penalty Imposition:**
* A monetary penalty of ₹2.25 lakh has been imposed on Beed District Central Co-operative Bank Ltd.
* **Reasons for Penalty:**
* Contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
* Non-compliance with RBI directions on 'Membership of Credit Information Companies (CICs) by Co-operative Banks' and 'Know Your Customer (KYC)'.
* Failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time.
* Failure to submit credit information of customers to all four CICs.
* Failure to undertake requisite Customer Due Diligence (CDD) procedures.
* **Authority:**
* The penalty is imposed under powers conferred on RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act and Section 25 of the Credit Information Companies (Regulation) Act, 2005.
* **Inspection and Findings:**
* The statutory inspection was conducted by NABARD with reference to the bank's financial position as of March 31, 2024.
* RBI issued a notice to the bank, and after considering the bank's submissions, found the charges sustained.
* **Clarification:**
* The action is based on deficiencies in regulatory compliance and does not pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* The penalty is without prejudice to any other action that may be initiated by RBI.
**Impact Analysis**
**Beed District Central Co-operative Bank Ltd., Maharashtra**
* **Impact**
* Financial penalty of ₹2.25 lakh.
* Reputational impact due to non-compliance.
* Increased scrutiny from RBI.
* **Action Required**
* Pay the imposed penalty.
* Rectify the identified deficiencies in regulatory compliance, including transferring unclaimed amounts, submitting credit information to all CICs, and implementing CDD procedures.
* Strengthen internal controls and compliance mechanisms to prevent future violations.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
Banking Regulation Act, 1949 (BR Act): The act under which the penalty was imposed; specifically, contravention of Section 26A read with Section 56.
Beed District Central Co-operative Bank Ltd., Maharashtra: The bank on which the monetary penalty was imposed.
National Bank for Agriculture and Rural Development (NABARD): The entity that conducted the statutory inspection of the bank.
Credit Information Companies (Regulation) Act, 2005: The Act under which the penalty was imposed; specifically, Section 25.
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भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
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Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
September 29, 2025
RBI imposes monetary penalty on Beed District Central Co-operative Bank Ltd.,
Maharashtra
The Reserve Bank of India (RBl) has imposed, by an order dated September 25,
2025, a monetary penalty of ₹2.25 lakh (Rupees Two Lakh Twenty Five Thousand
only) on Beed District Central Co-operative Bank Ltd., Maharashtra (the bank) for
contravention of provisions of Section 26A read with Section 56 of the Banking
Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by
RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’
and ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of
powers conferred on RBI under the provisions of section 47A(1)(c) read with Sections
46(4)(i) and 56 of the BR Act and Section 25 of the Credit Information Companies
(Regulation) Act, 2005.
The statutory inspection of the bank was conducted by the National Bank for
Agriculture and Rural Development (NABARD), with reference to its financial position
as on March 31, 2024. Based on supervisory findings of contravention of statutory
provisions / non-compliance with RBI directions and related correspondence in that
regard, a notice was issued to the bank advising it to show cause as to why penalty
should not be imposed on it for its failure to comply with the said provisions and
directions. After considering the bank's reply to the notice, additional submissions
made by it and oral submissions made during the personal hearing, RBI found, inter
alia, that the following charges against the bank were sustained, warranting
imposition of monetary penalty:
The bank had:
i) failed to transfer eligible unclaimed amounts to the Depositor Education and
Awareness Fund within the prescribed time;
ii) failed to submit credit information of its customers to all the four CICs; and
iii) failed to undertake requisite Customer Due Diligence (CDD) procedure while
establishing account-based relationship in certain accounts.
This action is based on deficiencies in regulatory compliance and is not intended
to pronounce upon the validity of any transaction or agreement entered into by the
bank with its customers. Further, imposition of this monetary penalty is without
prejudice to any other action that may be initiated by RBI against the bank.
(Puneet Pancholy)
Press Release: 2025-2026/1194 Chief General Manager