**Summary:**
On September 2, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹5.50 lakh (Rupees Five Lakh Fifty Thousand only) on The Dakshin Dinajpur District Central Co-operative Bank Limited, West Bengal, for non-compliance with RBI's Know Your Customer (KYC) directions. The penalty was levied under the powers conferred on RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
A statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank's financial position as of March 31, 2024, revealed the non-compliance. Specifically, the bank failed to: (i) implement a system for periodic review of risk categorization of accounts at least once every six months; and (ii) upload customer KYC records onto the Central KYC Records Registry (CKYCR) within the stipulated timeframe.
The RBI issued a show cause notice to the bank, and after considering the bank's response and oral submissions during a personal hearing, determined that the charges were sustained, warranting the monetary penalty. The action is based on deficiencies in regulatory compliance and does not reflect on the validity of any transactions or agreements between the bank and its customers. This penalty is without prejudice to any other action that the RBI may initiate against the bank.
For further information, contact the Department of Communication, Central Office, Reserve Bank of India, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001, email: helpdoc@rbi.org.in, Phone: 022-2266 0502. The press release number is 2025-2026/1041.
Key Entities Referenced
Reserve Bank of India (RBI): The central bank of India, which imposed a monetary penalty on The Dakshin Dinajpur District Central Co-operative Bank Limited.
The Dakshin Dinajpur District Central Co-operative Bank Limited, West Bengal: A cooperative bank in West Bengal that was penalized by the RBI for non-compliance with KYC directions.
West Bengal: The State in India where The Dakshin Dinajpur District Central Co-operative Bank Limited is located.
Know Your Customer (KYC): A set of regulations and procedures for banks to verify the identity of their customers, for which non-compliance led to the penalty.
Banking Regulation Act, 1949: The Indian law under which the RBI's powers to impose the penalty are derived, specifically Sections 47A(1)(c), 46(4)(i) and 56.
National Bank for Agriculture and Rural Development (NABARD): An apex development finance institution in India, which conducted the statutory inspection of the bank.
Central KYC Records Registry (CKYCR): A centralized repository for KYC records of customers, where the bank failed to upload KYC records within the prescribed timeline.
Puneet Pancholy: Chief General Manager who released the press release.
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 04, 2025
RBI imposes monetary penalty on The Dakshin Dinajpur District Central Co-
operative Bank Limited, West Bengal
The Reserve Bank of India (RBI) has, by an order dated September 02, 2025,
imposed a monetary penalty of ₹5.50 lakh (Rupees Five Lakh Fifty Thousand only)
on The Dakshin Dinajpur District Central Co-operative Bank Limited, West Bengal
(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 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 charges against the bank were sustained, warranting imposition of
monetary penalty:
The bank had failed to:
i) put in place a system of periodic review of risk categorisation of accounts, with
such periodicity being at least once in six months; and
ii) 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: 2025-2026/1041 Chief General Manager