RBI imposes monetary penalty on The Mumbai District Central Co-operative Bank Ltd., Maharashtra

In an order issued on August 25, 2026, the Reserve Bank of India (RBI) has imposed a penalty of ₹20,000 on The Mumbai District Central Co-operative Bank Ltd. For failing to comply with certain RBI directives regarding the Know Your Customer (KYC) process. This penalty was imposed under the Banking Regulation Act of 1949, specifically under Section 47A(1)(c) in conjunction with Sections 46(4)(i) and 56.

The RBI's inspection was carried out by the National Bank for Agriculture and Rural Development (NABARD), focusing on the bank's financial standing as of March 31, 2025.

Following a review of the bank's response to a notice advising it to justify the lack of compliance, coupled with additional submissions and oral arguments during a personal hearing, the RBI concluded that the bank had not uploaded the required KYC records of its customers to the Central KYC Records Registry (CKYCR) within the stipulated time frame.

This deficiency was one of the issues that warranted the imposition of the monetary penalty. The RBI's decision was based on regulatory compliance deficiencies and does not evaluate the validity of any transactions or agreements the bank may have had with its customers.

It is important to note that this penalty does not influence any other potential actions that the RBI might take against the bank.