India, July 13 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 13 lakh on The Chikhli Urban Co-operative Bank Limited, Chikhli, Maharashtra, for violating provisions of the Banking Regulation Act, 1949, and for non-compliance with RBI directions relating to housing finance and Know Your Customer (KYC) norms.
The action follows an RBI statutory inspection based on the bank's financial position as of March 31, 2025. After reviewing the bank's response and submissions, the central bank concluded that multiple regulatory lapses had occurred.
According to the RBI, the bank failed to transfer eligible unclaimed deposits to the Depositor Education and Awareness Fund within the prescribed timeline, sanctioned loans to buil...