Regulatory and Policy Measures
The Reserve Bank of India, by an order dated 02 July 2026, imposed a monetary penalty of ₹50,000 (Rupees Fifty Thousand only) on The Nawada Central Co-operative Bank Limited, Bihar, 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.
Banking and Credit
A statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on 31 March 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 reply and oral submissions made during a personal hearing, RBI found that the bank had failed to upload the KYC records of its customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline. This breach warranted the imposition of the monetary penalty.
The RBI clarified that this action is based on a deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The imposition of the penalty is without prejudice to any other action that may be initiated by RBI against the bank.
The press release is signed by the Chief General Manager, Brij Raj.