RBI Impounds ₹10,000 Penalty on Dharmavir Sambhaji Bank for Critical KYC Noncompliance
The Reserve Bank of India (RBI) has imposed a monetary penalty on Dharmavir Sambhaji Urban Cooperative Bank Ltd., Pune, Maharashtra. The bank was fined ₹10,000/- (Rupees Ten Thousand only) in an order issued on June 29, 2026. This action targets the failure of the urban cooperative bank to adhere to specific directions regarding Know Your Customer (KYC) protocols laid down by the central regulator.The penalty was levied under powers granted to the RBI through Section 47A(1)(c), along with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The decision followed a statutory inspection conducted by the RBI concerning the bank's financial position as of March 31, 2025.
Basis for Monetary Penalty
Supervisory findings revealed serious instances of noncompliance with multiple directions issued by the Reserve Bank of India. A notice was previously issued to the cooperative bank advising them to present a cause regarding why they should not be penalized for their failure to comply with the specified guidelines.The RBI review process included consideration of the bank's formal reply and oral submissions made during a personal hearing session. Following these deliberations, the regulator determined that specific charges against the bank were sustained.
Key Compliance Deficiency Identified by RBI
The primary charge leading to the imposition of the monetary penalty related directly to data management deficiencies. The investigation concluded that Dharmavir Sambhaji Urban Cooperative Bank Ltd. failed to upload customer KYC records onto the Central KYC Records Registry (CKYCR). This failure occurred within the prescribed regulatory timeframe set by the RBI.This action highlights a deficiency in regulatory compliance at the institution level. The RBI confirmed that this specific penalty is purely based on noncompliance and is separate from any transactions conducted by the bank.
Scope and Future Regulatory Actions
The imposition of this monetary penalty is intended solely as a disciplinary measure against regulatory breaches. The RBI stated that this action does not prejudice the validity of any transaction or agreement previously entered into by the bank with its clientele.Furthermore, the regulator maintained that the imposition of this fine remains without affecting any other potential actions that may be initiated against Dharmavir Sambhaji Urban Cooperative Bank Ltd. in future proceedings related to compliance.
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