RBI fines Vijayapura District Central Co-op Bank Ltd., Karnataka

RBI fines Vijayapura District Central Co-op Bank Ltd., Karnataka

The Reserve Bank of India (RBI) has imposed a monetary penalty on the Vijayapura District Central Co-operative Bank Ltd. in Karnataka for non-compliance with various regulatory norms. The penalty, announced on August 19, 2025, is a result of the bank's failure to adhere to the Supervisory Action Framework (SAF) and other RBI guidelines.

The RBI cited deficiencies in compliance with directions under the Banking Regulation Act, 1949, and other regulatory standards. The specific contraventions included lapses in adhering to Know Your Customer (KYC) norms and violations of provisions of Sections 19 and 20 read with Section 56 of the Banking Regulation Act, 1949. The penalty imposed on the Vijayapura District Central Co-operative Bank Ltd. is Rs 50,000.

This penalty is part of a broader initiative by the RBI to ensure compliance with regulatory norms across the cooperative banking sector. Similar penalties have been imposed on other cooperative banks in Karnataka, Gujarat, and Tamil Nadu, highlighting the need for strict adherence to regulatory guidelines.

[1] https://www.indiancooperative.com/co-op-news-snippets/rbi-fines-five-co-op-banks-of-karnataka-gujarat-and-tn/