RBI Action: RBI imposed a huge fine on this bank for breaking the rules, do you have an account in it?

RBI has taken strict action against another bank. It has imposed monetary penalty for violating the rules. Let us know whether this action will also affect the customers?

RBI Action: The Reserve Bank of India has taken action against more than 20 banks in May so far. Some have canceled their licenses and some have been fined. Another government bank has been included in this list. RBI has violated the guidelines related to “Membership of Credit Information Company by Cooperative Banks” on The Aska Central Co-operative Bank Limited, located in Aska, Odisha.

The National Bank for Agriculture and Rural Development (NABARD) conducted an inspection on 31 March 2024 in relation to the financial position of the bank. During this, deficiencies in compliance with the rules were detected. After which a show cause notice was issued to the bank. After the response received on the notice and oral-written presentations, it was decided to impose a monetary penalty.

Was these rules violated? (RBI Action)

This cooperative bank failed to provide credit information of its customers to any credit information company. Using the powers provided under sections 25(1)(iii) and 23(4) of the Credit Information Company Regulation Act 2005, RBI has imposed a fine of Rs 10,000 on the bank. An order has been issued in this regard on May 20, 2025.

Will it affect the customers?

This action of RBI will not affect the transactions between customers and banks. This has been confirmed by the central bank itself. In the notice, RBI said, “This action is based on regulatory deficiencies. Its purpose is not to affect any transaction or agreement between customers and banks.” Not only this, it will not affect any other action of the Reserve Bank of India in future.

 

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