RBI · Enforcement
RBI fines Modern Co-operative Bank Rs 1 lakh for rule breaches
The RBI penalised the bank for exceeding single borrower exposure limits and failing to upload KYC records on time.
What changed
- RBI imposed a monetary penalty of Rs 1 lakh on The Modern Co-operative Bank
- Penalty for breaching single borrower exposure norms and KYC upload timelines
The read
The Reserve Bank of India imposed a ₹1 lakh penalty on The Modern Co-operative Bank Ltd for violating exposure norms and KYC rules. The statutory inspection as of March 31, 2025 found the bank had exceeded the single borrower limit and failed to upload customer KYC records to the Central KYC Registry within the prescribed period. The RBI's order dated June 23, 2026 reflects its increasing vigilance over cooperative banks' compliance with prudential and anti-money laundering guidelines. The penalty is a reminder that regulatory discipline applies irrespective of bank size.
Key numbers
- penalty: Rs 1 lakh
- inspection reference date: March 31, 2025
- order date: June 23, 2026
Primary source: rbi.org.in