Document title: RBI imposes monetary penalty on The United Puri‑Nimapara Central Co‑operative Bank Limited, Odisha
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/715
Date: July 20, 2026
Regulatory and Policy Measures
The Reserve Bank of India, by an order dated July 14, 2026, imposed a monetary penalty of ₹3 lakh (Rupees Three Lakh only) on The United Puri‑Nimapara Central Co‑operative Bank Limited, Odisha, for non‑compliance with RBI directions on Know Your Customer (KYC). The penalty is exercised under the powers conferred by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
A statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2025. Based on supervisory findings of non‑compliance with RBI directions and related correspondence, a notice was issued to the bank asking it to show cause why a penalty should not be imposed. After considering the bank’s written reply, additional submissions, and oral submissions made during a personal hearing, RBI sustained the charge that the bank failed to upload the KYC records of its customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline.
The RBI clarified that this action is based solely on a deficiency in regulatory compliance and does not comment on the validity of any transaction or agreement entered into by the bank with its customers. The monetary penalty is imposed without prejudice to any other action that may be initiated by the RBI against the bank.
The press release is signed by the Chief General Manager, Brij Raj.
This document underscores the RBI’s enforcement of KYC compliance among cooperative banks and its willingness to levy penalties for breaches of regulatory directives.