**Summary:**
On September 8, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹50,000 (Rupees Fifty Thousand only) on the Sikkim State Cooperative Bank Ltd. for non-compliance with RBI's directions on Know Your Customer (KYC) norms. The penalty was levied under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. A statutory inspection of the bank, conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as of March 31, 2024, revealed the non-compliance. Specifically, the bank failed to upload KYC records of customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline. The RBI issued a notice to the bank, and after considering the bank's reply and oral submissions, the RBI determined that the imposition of a monetary penalty was warranted. This action is based on deficiency in regulatory compliance and does not reflect upon the validity of any transaction or agreement entered into by the bank with its customers. The imposition of this penalty is without prejudice to any other action that may be initiated by RBI against the bank. For further information, contact Puneet Pancholy, Chief General Manager, Department of Communication, Reserve Bank of India.
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as RBI.
Sikkim State Cooperative Bank Limited, Sikkim: A cooperative bank in the state of Sikkim, India, which was penalized by RBI.
Banking Regulation Act, 1949: An act of the Parliament of India to regulate the banking companies in India.
Know Your Customer (KYC): A set of guidelines issued by the Reserve Bank of India requiring banks to verify the identity of their customers.
National Bank for Agriculture and Rural Development (NABARD): An apex development finance institution in India.
Central KYC Records Registry (CKYCR): A centralized repository of KYC records of customers.
Section 47A1c: Section of Banking Regulation Act, 1949 that empowers RBI to impose penalties.
Puneet Pancholy: Chief General Manager at Reserve Bank of India
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
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 11, 2025
RBI imposes monetary penalty on Sikkim State Co-operative Bank Limited, Sikkim
The Reserve Bank of India (RBI) has, by an order dated September 08, 2025,
imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on Sikkim State
Co-operative Bank Ltd. (the bank) for non-compliance with certain directions issued by
RBI on ‘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 Banking Regulation Act, 1949.
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 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 directions. After considering the bank’s reply to the notice and oral
submissions made during the personal hearing, RBI found, inter-alia, that the following
charge against the bank was sustained, warranting imposition of monetary penalty:
The bank had failed to upload the KYC records of customers onto Central KYC
Records Registry (CKYCR) within the prescribed timeline.
This action is based on deficiency 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: 2025-2026/1082 Chief General Manager