The Reserve Bank of India (RBI), through an order dated September 2, 2025, has imposed a monetary penalty of Rs 5.5 lakh on The Rohika Central Co-operative Bank Limited, Bihar, for contravening provisions of Section 9 read with Section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI directions on Membership of Credit Information Companies (CICs) by Co-operative Banks and Know Your Customer (KYC) norms.

The penalty was imposed under the powers conferred on RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act, along with Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005.

The action followed a NABARD inspection of the bank’s financials as of March 31, 2024. After reviewing supervisory findings, the bank’s reply, and oral submissions during the personal hearing, RBI concluded that the bank had failed to:

dispose of certain Non-Banking Assets within the prescribed timeline,

submit customer credit information to all four Credit Information Companies, and

upload KYC records to the Central KYC Records Registry (CKYCR) within the stipulated period.

RBI clarified that the penalty is due to deficiencies in regulatory compliance and does not affect the validity of customer transactions or agreements. The action is without prejudice to any other measures RBI may initiate against the bank.