Document title: RBI imposes monetary penalty on The Mumbai District Central Co-operative Bank Ltd., Maharashtra
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/1004
Date: 31 August 2026
Banking and Credit
The Reserve Bank of India, by an order dated 25 August 2026, imposed a monetary penalty of ₹20,000 (Rupees Twenty Thousand only) on The Mumbai District Central Co-operative Bank Ltd., Maharashtra, for non‑compliance with RBI directions on Know Your Customer (KYC). The bank failed to upload the KYC records of its customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline. The penalty follows a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on 31 March 2025, and a subsequent show‑cause notice, the bank’s reply, additional submissions and oral arguments during a personal hearing.
Regulatory and Policy Measures
The RBI exercised powers conferred under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, to impose the penalty. The RBI clarified that the action is based solely on deficiencies in regulatory compliance and does not pronounce 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 RBI’s enforcement underscores its commitment to strict adherence to KYC norms and the use of statutory powers to ensure compliance among cooperative banks.