Patna: The Reserve Bank of India has imposed a monetary penalty of Rs 20,000 on the Aurangabad District Central Cooperative Bank in Bihar for non-compliance with credit information reporting requirements.
The action, according to the central bank, was taken after supervisory findings revealed deficiencies in the bank’s adherence to regulatory instructions related to credit data submission.
NABARD Inspection Findings
A statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD), with reference to the bank’s financial position as on March 31, 2025, flagged irregularities in reporting practices.
The inspection and subsequent correspondence found that the bank had failed to furnish complete credit-related information of its borrowers to all four credit information companies, as required under regulatory norms.
Regulatory Action and Hearing
Following the observations, the Reserve Bank issued a show-cause notice to the bank seeking explanation for the lapse. After reviewing the bank’s response and conducting a personal hearing, the RBI concluded that the charges were substantiated.
The central bank stated that the violation related specifically to deficiencies in compliance with credit information reporting guidelines under the Credit Information Companies (Regulation) Act, 2005.
RBI Clarification
In its order, the RBI clarified that the penalty was imposed solely on grounds of regulatory non-compliance. It added that the objective of such enforcement action is to ensure transparency and strengthen adherence to reporting standards within the banking system.
The Aurangabad District Central Cooperative Bank is yet to issue a detailed public response on the matter.
