**Executive Summary**
This press release, dated November 24, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.50 lakh on The District Co-operative Central Bank Limited, Kurnool, Andhra Pradesh. The penalty was imposed on November 20, 2025, for contravention of provisions of Sections 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with KYC directions.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹1.50 lakh on The District Co-operative Central Bank Limited, Kurnool, Andhra Pradesh.
* The order was dated November 20, 2025.
* **Reasons for Penalty:**
* Contravention of provisions of Sections 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
* Non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)'.
* **Basis of Action:**
* The statutory inspection of the bank was conducted by NABARD with reference to its financial position as on March 31, 2024.
* RBI found that the bank had:
* Sanctioned loans to its directors.
* Failed to upload KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline.
**Impact Analysis**
**The District Co-operative Central Bank Limited, Kurnool, Andhra Pradesh**
* **Impact:**
* The bank has been subjected to a monetary penalty of ₹1.50 lakh.
* The findings reveal deficiencies in statutory and regulatory compliance.
* **Action Required:**
* The bank must address the identified deficiencies related to loan sanctioning practices and KYC record updates.
* The bank must adhere to the statutory and regulatory compliance standards.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
Banking Regulation Act, 1949 (BR Act): The primary legislation under which the penalty was imposed.
The District Co-operative Central Bank Limited, Kurnool, Andhra Pradesh: The bank on which the monetary penalty was imposed.
Know Your Customer (KYC): RBI directions regarding customer identification.
National Bank for Agriculture and Rural Development (NABARD): The entity that conducted the inspection of the bank.
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
November 24, 2025
RBI imposes monetary penalty on The District Co-operative Central Bank
Limited, Kurnool, Andhra Pradesh
The Reserve Bank of India (RBI) has, by an order dated November 20, 2025,
imposed a monetary penalty of ₹1.50 lakh (Rupees One Lakh Fifty Thousand only)
on The District Co-operative Central Bank Limited, Kurnool, Andhra Pradesh (the
bank) for contravention of provisions of Sections 20 read with Section 56 of the
Banking Regulation Act, 1949 (BR Act) and 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 BR Act.
The statutory inspection of the bank was conducted by 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 and 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 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. sanctioned loans to its directors; and
ii. failed to upload the KYC records of customers onto Central KYC Records
Registry (CKYCR) within the prescribed timeline.
This action is based on deficiencies in statutory and 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.
(Brij Raj)
Press Release: 2025-2026/1557 Chief General Manager