**Summary:**
On September 1, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹2.02 lakh on The Pataliputra Central Cooperative Bank Ltd., Bihar, for non-compliance with RBI's directives on Know Your Customer (KYC) guidelines and membership requirements related to Credit Information Companies (CICs). This penalty is exercised under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 25 read with Section 23 of the Credit Information Companies Regulation Act, 2005.
A statutory inspection by NABARD, referencing the bank's financial position as of March 31, 2024, revealed the non-compliance. The bank failed to implement a system for periodic review of risk categorization of accounts (at least once every six months) and did not submit customer credit information to three credit information companies. The RBI issued a notice to the bank, and after reviewing the bank's response, oral submissions, and additional submissions, determined the penalty was warranted.
This action addresses deficiencies in regulatory compliance and does not assess the validity of any transactions or agreements between the bank and its customers. The imposition of this penalty does not preclude any further action by the RBI against the bank.
Contact:
Department of Communication, Central Office,
Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001
Phone: 022-2266 0502
Email: helpdoc@rbi.org.in
Website: www.rbi.org.in
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as RBI, which imposed a monetary penalty.
The Pataliputra Central Cooperative Bank Limited, Bihar: A cooperative bank in Bihar that was penalized by the RBI for non-compliance.
Banking Regulation Act, 1949: An act of parliament in India that regulates the banking industry.
Credit Information Companies Regulation Act, 2005: An act of parliament in India that regulates credit information companies.
Know Your Customer KYC: A set of regulations and procedures banks must follow to verify the identity of their customers.
Credit Information Companies CICs: Organizations that collect and provide credit information on individuals and businesses.
National Bank for Agriculture and Rural Development NABARD: An apex development finance institution in India.
Puneet Pancholy: Chief General Manager
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 Pataliputra Central Co-operative Bank
Limited, Bihar
The Reserve Bank of India (RBI) has, by an order dated September 01, 2025,
imposed a monetary penalty of ₹2.02 lakh (Rupees Two Lakh Two Thousand Only) on
The Pataliputra Central Co-operative Bank Ltd., Bihar (the bank) for non-compliance
with certain directions issued by RBI on ‘Know Your Customer (KYC)’ and ‘Membership
of Credit Information Companies (CICs) 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 Banking Regulation Act, 1949 and
Section 25 read with Section 23 of the Credit Information Companies (Regulation Act),
2005.
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, oral submissions
made during the personal hearing and additional submissions made by it, 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) submit credit information of its customers to three credit information companies.
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: 2025-2026/1040 Chief General Manager