The Reserve Bank of India (RBI) has imposed a monetary penalty of ?1 lakh on District Central Co-operative Bank Ltd., Durg, Chhattisgarh, for non-compliance with RBI directions on Know Your Customer (KYC) norms. The penalty, dated June 30, 2025, has been levied under the provisions of Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The action follows a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD), based on the bank's financial position as of March 31, 2024. The RBI issued a show-cause notice to the bank after identifying instances of non-compliance with KYC norms.

Upon reviewing the bank’s written response, oral submissions during the personal hearing, and additional representations, RBI confirmed the following violations:

Failure to upload KYC records of certain customers to the Central KYC Records Registry (CKYCR) within the prescribed timeframe.

Non-compliance with periodic KYC updates for specific customer accounts.

Allotment of multiple Customer Identification Codes to individual customers instead of assigning a Unique Customer Identification Code (UCIC).

RBI clarified that the penalty is based on deficiencies in regulatory compliance and does not question the validity of any individual transactions or agreements made by the bank with its customers. The central bank also noted that this penalty is without prejudice to any further regulatory action that may be taken against the bank.