RBI fines Chikhli Urban Co-operative Bank ₹13 lakh for rule breaches
The penalty was for failing to transfer unclaimed deposits, violating housing finance norms, and KYC lapses.
What changed
- Failed to transfer unclaimed deposits to DEA Fund
- Sanctioned loans for land acquisition to builders
- Lacked effective software for suspicious transaction reporting
The read
RBI imposed a ₹13 lakh penalty on The Chikhli Urban Co-operative Bank for multiple compliance failures. The bank did not transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period, breaching Section 26A of the Banking Regulation Act. It also sanctioned loans to builders for land acquisition, violating housing finance directions for UCBs. Its KYC software was inadequate for identifying suspicious transactions. This enforcement shows RBI's zero tolerance for repeated lapses by smaller banks. The penalty follows an inspection as of March 31, 2025, and the order was issued on July 8, 2026.
Key numbers
- Penalty: ₹13 lakh
- Order date: July 8, 2026
- Inspection as on: March 31, 2025
Primary source: rbi.org.in