The Reserve Bank of India has imposed a monetary penalty of Rs 1.50 lakh on The Davanagere District Central Co-operative Bank Limited for violations of regulatory norms and non-compliance with KYC guidelines.

The penalty, ordered on March 24, 2026, was levied for contravention of provisions under the Banking Regulation Act, 1949, and failure to adhere to RBI’s ‘Know Your Customer (KYC)’ directions.

The action follows a statutory inspection conducted by National Bank for Agriculture and Rural Development (NABARD) based on the bank’s financial position as of March 31, 2025.

RBI found multiple lapses, including holding shares in other co-operative societies in violation of norms, assigning multiple customer identification codes instead of a Unique Customer Identification Code (UCIC), and delays in uploading customer KYC records to the Central KYC Records Registry (CKYCR).

The central bank clarified that the penalty is based on regulatory and statutory compliance deficiencies and does not impact the validity of transactions undertaken by the bank. It also noted that the action is without prejudice to any further measures that may be initiated.