**Executive Summary**
This press release, dated November 20, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.50 lakh on The Nawada Central Co-operative Bank Limited, Bihar. The penalty was issued on November 14, 2025, due to contravention of provisions of Section 26A of the Banking Regulation Act and non-compliance with RBI directions regarding membership of Credit Information Companies.
**Key Points / Main Content**
* **Monetary Penalty:** RBI imposed a monetary penalty of ₹1.50 lakh on The Nawada Central Co-operative Bank Limited, Bihar.
* **Reason for Penalty:** The penalty is for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain RBI directions on 'Membership of Credit Information Companies by Co-operative Banks'.
* **Authority:** The penalty was 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 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005.
* **Background:** A statutory inspection by NABARD with reference to the bank's financial position as on March 31, 2024, revealed contraventions and non-compliance.
* **Bank Failures:** The bank failed to:
* Transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time.
* Submit credit information of its customers to all the four Credit Information Companies.
* **Disclaimer:** The action is based on deficiency in regulatory compliance and does not pronounce upon the validity of any transaction or agreement with customers.
* **Additional Actions:** The penalty is without prejudice to any other action that may be initiated by RBI.
**Impact Analysis**
**The Nawada Central Co-operative Bank Limited, Bihar**
* **Impact:** Suffered a monetary penalty of ₹1.50 lakh due to regulatory non-compliance.
* **Action Required:** Must address the deficiencies identified by the RBI to avoid further penalties or actions.
**Customers of The Nawada Central Co-operative Bank Limited, Bihar**
* **Impact:** The document states that 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.
* **Action Required:** No immediate action required; however, customers may want to ensure their credit information is being properly submitted to Credit Information Companies.
**Reserve Bank of India (RBI)**
* **Impact:** Involved in enforcing regulatory compliance within the banking sector.
* **Action Required:** Continue to monitor the bank's compliance and take further action if necessary.
**Credit Information Companies**
* **Impact:** Affected by the bank's failure to submit customer credit information.
* **Action Required:** Ensure that the bank starts complying with regulations.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
The Nawada Central Co-operative Bank Limited, Bihar: The entity on which the monetary penalty is imposed.
Banking Regulation Act, 1949 (BR Act): Law under which the penalty is imposed.
Credit Information Companies (Regulation) Act, 2005: Law under which the penalty is imposed.
National Bank for Agriculture and Rural Development (NABARD): Conducted the inspection of the bank.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
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 20, 2025
RBI imposes monetary penalty on The Nawada Central Co-operative Bank Limited, Bihar
The Reserve Bank of India (RBI) has, by an order dated November 14, 2025, imposed a
monetary penalty of ₹ 1.50 lakh (Rupees One Lakh Fifty Thousand only) on The Nawada Central
Co-operative Bank Limited, Bihar (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 by Co-operative
Banks’. 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
read with Section 23 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 / 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. transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund
within the prescribed time; and
ii. submit credit information of its customers to all the four Credit Information Companies.
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.
(Brij Raj)
Press Release: 2025-2026/1538 Chief General Manager