Document title: RBI imposes monetary penalty on Raigad District Central Co-operative Bank Ltd., Maharashtra
Issuing authority: Reserve Bank of India (RBI)
Reference number: Not applicable
Date: 27 July 2026
Banking and Credit
The RBI, by an order dated 23 July 2026, imposed a monetary penalty of ₹10.10 lakh (Rupees Ten Lakh and Ten Thousand only) on Raigad District Central Co-operative Bank Ltd. for contraventions of section 20(1) read with section 56 of the Banking Regulation Act, 1949 and for non‑compliance with RBI directions on the membership of Credit Information Companies (CICs) by co‑operative banks. The penalty arises from two specific deficiencies: the bank sanctioned a loan to a director, and it failed to report the credit information of its borrowers to all Credit Information Companies.
The statutory inspection that uncovered these breaches was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as of 31 March 2025. After the inspection, RBI issued a notice to the bank asking it to show cause why the penalty should not be imposed. The bank’s reply and additional submissions were considered, and RBI concluded that the charges were sustained, leading to the imposition of the penalty.
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, as well as under section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005, to levy the penalty. The RBI clarified that the action is based solely on deficiencies in statutory and regulatory compliance and does not constitute a judgment on the validity of any transaction or agreement entered into by the bank with its customers. Furthermore, the imposition of the monetary penalty is without prejudice to any other action that the RBI may initiate against the bank in the future.
In conclusion, the RBI’s enforcement action underscores its commitment to ensuring co‑operative banks adhere to statutory lending norms and credit‑information reporting requirements, signalling continued regulatory vigilance in the banking sector. This content may not be financially relevant.