The Reserve Bank of India (RBI) has imposed fines on four banks in different states. Some banks broke the KYC rules, and one bank in Maharashtra did not follow the loan and advance rules under the Supervisory Action Framework (SAF). RBI found these issues during an inspection. The central bank shared this information in a press release on Thursday, September 4.
Three banks violated KYC rules. The Maharashtra bank did not follow loan and advance rules. On March 31, 2025, RBI checked the financial position of these banks. During this, rule violations were found. RBI then issued show-cause notices to all banks. The decision to impose fines was made after looking at the banks’ replies and presentations.
RBI said this action will not affect customer transactions with the banks. It also does not affect any other RBI actions in the future. The fines are only because of problems in following the rules.
Banks Fined for Breaking KYC Rules
The South Dinajpur District Central Co-operative Bank Limited in West Bengal has been fined Rs 5.50 lakh. The bank did not review the risk classification of accounts at least once in six months. It also failed to upload customer KYC records to the Central KYC Record Registry on time.
The Patliputra Central Co-operative Bank Limited in Bihar has been fined Rs 2.02 lakh. This bank also did not review account risk regularly and failed to send customer loan information to three credit information companies.
The Urban Co-operative Bank Limited, Cuttack, Odisha, has been fined Rs 4.50 lakh. The bank did not upload customer KYC records to the Central KYC Record Registry in time.
Bank Fined for Loan Rule Violation
Dahanu Road Janata Co-operative Bank Ltd. in Maharashtra has been fined Rs 1 lakh. The bank did not follow instructions under the Supervisory Action Framework (SAF). It failed to reduce single and group borrower risk limits for some loans by 25% from the regulatory limit.