Murshidabad District Central Co-operative Bank Receives ₹2.10 Lakh Fine
By Ankur Chandra | Updated at: May 31, 2025 10:45 PM IST
Kolkata, May 26, 2025 – The Reserve Bank of India (RBI) slapped a penalty of ₹2.10 lakh on Murshidabad District Central Co-operative Bank.
The penalty has specifically been imposed by the Reserve Bank of India (RBI) for not following the Know Your Customer (KYC) guidelines and Credit Information reporting pertaining to Customer Information Files.
In the order of penalty issued on May 22, 2025, The bank has been directed to pay this amount because they had not adhered to the guidelines pertaining to ‘Know Your Customer (KYC)’ and ‘Credit Information Companies (CICs) Memberships for Cooperative Banks’ issued by RBI was cited in this report. Using the provisions of the Banking Regulation Act, 1949, and the Credit Information Companies (Regulation) Act of 2005, the enforcement action was taken.
Key Regulatory Findings
The penalty comes after NABARD held a statutory inspection, which included the assessment of the bank’s financial status as of March 31, 2024. After the inspection, the following breaches were seen:
| Violation | Description |
|---|---|
| Failure to review the risk categorisation of accounts | The bank did not conduct reviews at least once every six months as mandated |
| Non-compliance with KYC update norms | Lapses in periodic updation of customer KYC records |
| Non-submission of borrower data to CICs | The bank failed to provide credit information to all three registered CICs |
The RBI noted that these deficiencies amounted to a breach of its statutory directions and constituted grounds for penal action. The bank was given an opportunity to explain and defend its position, including during a personal hearing. However, the explanations provided were not satisfactory.
RBI Clarification
As per the RBI:
“This action is based on deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” the RBI stated.
REF: https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR411A8C8DBDC46A447A5BB37C078C00D4EA9.PDF
