Document title: RBI imposes monetary penalty on The Amravati District Central Co-operative Bank Ltd., Maharashtra
Issuing authority: Reserve Bank of India
Reference: Press Release: 2026-2027/853
Date: August 10, 2026
Banking and Credit
The Reserve Bank of India, by an order dated August 6, 2026, imposed a monetary penalty of ₹50,000 on The Amravati District Central Co-operative Bank Ltd., Maharashtra, for non‑compliance with RBI directions on Know Your Customer (KYC) and the reasonableness of bank charges for SMS alerts. The bank was found to have allotted multiple customer identification codes to certain customers instead of a unique code for each, and to have levied SMS alert charges without actually sending the SMS to those customers.
Regulatory and Policy Measures
The penalty was imposed under the powers conferred by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The statutory inspection of the bank was conducted by NABARD with reference to its financial position as on March 31, 2025. Following supervisory findings of non‑compliance, RBI issued a notice to the bank to show cause why the penalty should not be imposed. After considering the bank’s reply, additional submissions, and oral arguments during a personal hearing, RBI sustained the charges and imposed the penalty. The RBI clarified that the action is based on regulatory compliance deficiencies and does not affect the validity of any transaction or agreement with customers, and that the penalty is without prejudice to any further action that may be taken against the bank.
In conclusion, the RBI’s enforcement action underscores its commitment to strict adherence to KYC norms and reasonable banking charges, signalling heightened supervisory vigilance over cooperative banks. This content may not be financially relevant.