The RBI took action against five banks and one NBFC after Dussehra. Penalties were imposed for violating regulations. A related notification was also issued. Let’s explore the reasons behind this action and how it will impact customers.
Add informalnewz.com as a Preferred Source
RBI Action: The Reserve Bank of India (RBI) has taken strict action against five banks located in different states across the country. Monetary penalties have been imposed for non-compliance with guidelines. A non-banking finance company is also included in this list. The central bank announced this in a press release dated October 3, 2025.
The RBI has imposed penalties on two banks in Karnataka. The Hassan District Co-operative Central Bank Ltd. has been fined ₹1 lakh for holding shares in other co-operative societies in violation of the BR Act. Furthermore, the bank failed to upload customer KYC records to the Central KYC Records Registry within the stipulated timeframe. The Bagalkot District Central Co-operative Bank has been fined ₹5.50 lakh for sanctioning loans related to a director. Furthermore, it failed to submit certain statutory returns to NABARD within the stipulated timeframe.
This bank has been fined over ₹31 lakh.
The RBI has imposed a fine of ₹31.80 lakh on Express Banking Corp. for violating regulations related to credit and debit cards. During an investigation, it was found that the bank failed to refund/fail/reverse the credit balances of certain credit card holders to their bank accounts.
Penalty imposed on this Gujarat bank
The Ranuj Nagarik Sahakari Bank Limited, located in Patan, Gujarat, has been fined ₹3 lakh for failing to ensure the end use of funds for some of the loans sanctioned by it. Furthermore, it failed to enable its customers to respond promptly to SMS alerts to raise objections to unauthorized electronic banking transactions.
This Tamil Nadu bank is included in the list
Divyam Vidyalayam Town Cooperative Bank Limited, located in Tamil Nadu, has been fined ₹1,00,000. It is accused of sanctioning some new loans and advances beyond the risk limit and some loans and advances with risk exposures exceeding 100%, in violation of the directives issued under the Act. Furthermore, the bank failed to upload customer KYC records to the Central KYC Records Registry within the stipulated timeframe.
This NBFC has been fined
The RBI has imposed a penalty of ₹4.20 lakh on HDB Financial Services Limited for failing to provide Permanent Account Number (PAN) information or Form No. 60 documents in its accounts during the 2023-24 fiscal year.
The RBI discovered violations during inspections. Based on the investigation report, a show-cause notice has been issued to the bank and the company. The decision to impose the penalty was based on the replies received to the notice and the presentations made during the hearing. However, this penalty will not affect any transactions or agreements between the customers and the bank/company.
Add informalnewz.com as a Preferred Source
DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
