1. Raigad District Central Co-operative Bank Ltd., Maharashtra Key Details Penalty Amount: ₹10.10 Lakh (Rupees Ten Lakh and Ten Thousand only) Order Date: July 23, 2026 Contraventions: Section 20(1) read with section 56 of the Banking Regulation Act, 1949 (BR Act). Directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. […]
1. Kolhapur District Central Co-op Bank Ltd., Maharashtra Penalty: ₹13.30 Lakh Order Date July 17, 2026 Regulatory Violation Sanctioned director-related loans. Non-compliance with section 20(1) read with section 56 of the BR Act, 1949. Inspecting Authority NABARD (Financial position as of March 31, 2025) Root Cause Analysis (RCA) Inadequate checks during the loan origination process
Surat People’s Co-operative Bank Ltd., Surat Key Details Penalty Amount: ₹13.30 Lakh Date of Order: July 10, 2026 Violation: Non-compliance with directions on ‘Board of Directors UCBs’. Directors participated in and approved proposals in which they were directly or indirectly interested. Statutory Basis: Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation
1. Bank of Baroda Key Details Penalty Amount: ₹63.60 Lakh Date of Order: June 30, 2026 Violations: ‘Fair Practices Code for Lenders’ and ‘Know Your Customer (KYC)’. Specific Lapses: Collected interest higher than the contracted rate in certain loan accounts; failed to upload KYC records of certain customers onto the Central KYC Records Registry (CKYCR)
1. Hutatma Sahakari Bank Ltd., Walva, Maharashtra Key Details Penalty Amount: ₹5 Lakh Date of Order: June 19, 2026 Nature of Violation: Sanctioned loans to a relative of its director. Non-compliance with directions on ‘Loans and Advances to Directors, their Relatives, and Firms / Concerns in which they are Interested’. Root Cause Analysis (RCA) Failure
Five Star Business Finance Limited Penalty: ₹6.20 Lakh 📋 Key Details Date of Order: June 18, 2026 Violations: KYC Directions & Fair Practice Code. Specifics: Lack of software for suspicious transaction reporting; failure to disclose risk gradation and rationale for interest rates to borrowers. 🔍 Root Cause Analysis (RCA) Over-reliance on manual AML/KYC monitoring processes
1. IIFL Samasta Finance Limited Key Details Penalty Amount: ₹3.90 lakh. Regulatory Violation: Non-compliance with ‘Know Your Customer (KYC)’ and ‘Fraud Risk Management in NBFCs’ directions. Specific Failures: The company failed to put in place a robust software for the effective identification and reporting of suspicious transactions. Additionally, it failed to disclose correct details of
1. Canara Bank Penalty: ₹41.80 Lakh Key Details Order Date: June 5, 2026 Inspection Reference: March 31, 2025 Violations: Failure to upload KYC records of certain customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline. Classifying certain accounts as ‘inoperative’ despite the last customer-induced transaction being less than one year old. Root
1. CreditAccess Grameen Limited Penalty Amount ₹3.10 Lakh Order Date May 25, 2026 Inspection Date March 31, 2025 Regulation Violated KYC Directions (Suspicious Transactions) Key Details The company was penalized for non-compliance with the Reserve Bank of India (Know Your Customer) Directions. Specifically, it failed to implement a robust software mechanism capable of generating alerts
1. City Union Bank Limited Key Details Penalty: ₹10.10 Lakh Date: May 20, 2026 Category: Priority Sector Loans & Data Reporting Violation: 1) Levied loan-related charges on agriculture priority sector loans up to ₹25,000. 2) Failed to report Self Help Group (SHG) member-level data to Credit Information Companies (CICs). Root Cause Analysis (RCA) Charge Levies:
