India, Aug. 7 -- The Reserve Bank of India (RBI), through an order dated August 5, 2025, has imposed a monetary penalty of ?16 lakh on Andaman & Nicobar State Co-operative Bank Limited for violating provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI's directions on Know Your Customer (KYC) norms.
The penalty was imposed under the powers vested in the RBI by Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Act.
A statutory inspection of the bank, conducted by NABARD based on its financial position as of March 31, 2024, revealed contraventions of statutory provisions and non-compliance with regulatory directions. Following the findings, RBI issued a show-cause noti...