**Executive Summary**
On September 23, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹50,000 on The Guntur District Co-operative Central Bank Limited, Andhra Pradesh, for non-compliance with KYC directions. The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty was a result of the bank's failure to upload KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹50,000 on The Guntur District Co-operative Central Bank Limited.
* The penalty is for non-compliance with RBI’s KYC directions.
* **Legal Basis:**
* The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Background:**
* NABARD conducted a statutory inspection of the bank as of March 31, 2024.
* The penalty was imposed because of supervisory findings of non-compliance with RBI directions.
* The bank was issued a notice advising it to show cause as to why the penalty should not be imposed.
* The RBI sustained the charge against the bank after considering the bank's reply and oral submissions.
* **Reason for Penalty:**
* The bank failed to upload KYC records of customers onto CKYCR within the prescribed timeline.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance and does not pronounce upon the validity of any transaction entered into by the bank with its customers.
* The monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**The Guntur District Co-operative Central Bank Limited**
**Impact:** Monetary penalty of ₹50,000. Potential for further action by RBI.
**Action Required:** Improve compliance with KYC directions, particularly regarding the uploading of KYC records to CKYCR.
**Customers of the Bank**
**Impact:** 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.
**Action Required:** None.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
The Guntur District Co-operative Central Bank Limited, Andhra Pradesh: The bank on which monetary penalty was imposed.
Banking Regulation Act, 1949: The act under which the penalty was imposed (specifically, Sections 47A(1)(c), 46(4)(i) and 56).
Know Your Customer (KYC): The directions issued by RBI which the bank did not comply with, leading to the penalty.
National Bank for Agriculture and Rural Development (NABARD): The statutory inspection of the bank was conducted by NABARD.
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RESERVE BANK OF INDIA
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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 25, 2025
RBI imposes monetary penalty on The Guntur District Co-operative Central
Bank Limited, Andhra Pradesh
The Reserve Bank of India (RBI) has, by an order dated September 23, 2025,
imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The
Guntur District Co-operative Central Bank Limited, Andhra Pradesh (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 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 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: 2025-2026/1169 Chief General Manager