Monetary Penalty on The Modern Co-operative Bank Limited
RBI press-release 2026-2027/543 · 25 Jun 2026
Official title
RBI imposes monetary penalty on The Modern Co-operative Bank Limited, Chalisgaon, Maharashtra
RBI press-release 2026-2027/543 · 25 Jun 2026
Official title
RBI imposes monetary penalty on The Modern Co-operative Bank Limited, Chalisgaon, Maharashtra
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹1 lakh on The Modern Co-operative Bank Limited. The bank breached the regulatory limit for single borrower exposure. The bank failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline. The Reserve Bank of India issues this penalty under the Banking Regulation Act, 1949. This action follows a statutory inspection of the bank with reference to its financial position as on March 31, 2025.
Key dates
Who is affected
Thresholds
If you do not comply
June 25, 2026
RBI imposes monetary penalty on The Modern Co-operative Bank Limited, Chalisgaon, Maharashtra
The Reserve Bank of India (RBI) has, by an order dated June 23, 2026, imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on The Modern Co-operative Bank Limited, Chalisgaon, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions – 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 Banking Regulation Act, 1949.
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 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 directions. After considering the bank’s reply to the notice, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
i)
breached prescribed regulatory limit for single borrower exposure; and
ii)
failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline.
This action is based on deficiencies in 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: 2026-2027/543 Chief General Manager
प्रेस प्रकाशनी PRESS RELEASE
भारतीय įरज़वर् बैंक
RESERVE BANK OF INDIA
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