Monetary Penalty on The Chikhli Urban Co-operative Bank Limited · 2026-2027/658
RBI press-release 2026-2027/658 · 13 Jul 2026
Official title
RBI imposes monetary penalty on The Chikhli Urban Co-operative Bank Limited, Chikhli, Maharashtra
RBI press-release 2026-2027/658 · 13 Jul 2026
Official title
RBI imposes monetary penalty on The Chikhli Urban Co-operative Bank Limited, Chikhli, Maharashtra
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹13 lakh on The Chikhli Urban Co-operative Bank Limited. The bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund. The bank sanctioned loans to builders or contractors for land acquisition. The bank failed to implement robust software for the identification and reporting of suspicious transactions. These actions violate the Banking Regulation Act, 1949 and RBI directions on housing finance and Know Your Customer norms. The penalty follows a statutory inspection of the bank financial position as of March 31, 2025. The bank received a show cause notice and provided submissions before the final order.
Key dates
Who is affected
Thresholds
If you do not comply
July 13, 2026
RBI imposes monetary penalty on The Chikhli Urban Co-operative Bank Limited, Chikhli, Maharashtra
The Reserve Bank of India (RBl) has, by an order dated July 8, 2026, imposed a monetary penalty of ₹13 lakh (Rupees Thirteen Lakh only) on The Chikhli Urban Co-operative Bank Limited, Chikhli, Maharashtra (the bank) for contravention of the provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Finance for Housing Schemes – UCBs’, and ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI, under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of contravention of statutory provisions / non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said provisions and directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
i. failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period; ii. sanctioned loans to builders / contractors, for acquisition of land; and iii. failed to put in place a robust software for effective identification and reporting of suspicious transaction.
This action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2026-2027/658 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय įरज़वर् बैंक
RESERVE BANK OF INDIA
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