RBI · Enforcement
RBI fines Chitradurga District Co-op Central Bank ₹1.5 lakh for KYC, director loan norms
The penalty follows NABARD inspection findings that the bank sanctioned director-related loans and delayed uploading KYC records to CKYCR.
What changed
- RBI imposed ₹1.5 lakh penalty on The Chitradurga District Co-operative Central Bank Ltd.
- Bank violated Section 20 of BR Act by sanctioning director-related loans.
- Bank failed to upload KYC records to Central KYC Records Registry on time.
The read
The Reserve Bank of India imposed a monetary penalty of ₹1.50 lakh on The Chitradurga District Co-operative Central Bank Ltd. for contravening Section 20 of the Banking Regulation Act and non-compliance with KYC directions. A NABARD inspection as of March 31, 2025 found two specific failures: sanctioning loans to directors and delayed KYC record uploads to the Central KYC Records Registry. The RBI action, dated June 15, 2026, signals a zero-tolerance approach to governance and compliance gaps. The penalty is not a judgment on customer transactions.
Key numbers
- Penalty amount: ₹1.50 lakh
- Date of order: June 15, 2026
- Inspection date: March 31, 2025
Primary source: rbi.org.in