The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 4.50 lakh on Chandrapur District Central Co-operative Bank Ltd., Maharashtra, for violating provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI’s Know Your Customer (KYC) guidelines. The penalty order, dated September 15, 2025, has been issued under the powers conferred on RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act.

The penalty follows a statutory inspection by NABARD based on the bank’s financial position as of March 31, 2024. Supervisory findings revealed that the bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, did not upload KYC records of customers to the Central KYC Records Registry (CKYCR) on time, and allotted multiple customer identification codes to certain individuals instead of a Unique Customer Identification Code (UCIC).

RBI clarified that the penalty is solely for deficiencies in regulatory compliance and does not question the validity of any transactions or agreements entered into by the bank with its customers. This monetary penalty is without prejudice to further regulatory action that may be initiated against the bank.