The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.25 lakh on Beed District Central Co-operative Bank Ltd., Maharashtra, for contravening statutory provisions and failing to comply with RBI directions on Membership of Credit Information Companies (CICs) and Know Your Customer (KYC) norms.

A statutory inspection by NABARD, referencing the bank’s financial position as of March 31, 2024, revealed that the bank:

Failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed timeline.

Did not submit credit information of its customers to all four CICs.

Did not complete Customer Due Diligence (CDD) procedures for certain accounts.

The RBI said the penalty is imposed under Sections 47A(1)(c), 46(4)(i), and 56 of the Banking Regulation Act, 1949, and Section 25 of the Credit Information Companies (Regulation) Act, 2005. The action relates solely to regulatory non-compliance and does not affect the validity of any customer transactions. The imposition is without prejudice to any further action RBI may take against the bank.