RBI Fines Guntur District Co-operative Central Bank in Andhra Pradesh

The Reserve Bank of India (RBI) has imposed a monetary penalty on The Guntur District Co-operative Central Bank Limited, located in Andhra Pradesh. The decision was taken after the bank was found to be non-compliant with certain provisions of the Banking Regulation Act. RBI clarified that the action is based on regulatory concerns and does not affect the validity of any customer transactions or contracts with the bank. Depositors can continue to use the bank’s services without disruption. This step underscores RBI’s strict approach toward monitoring co-operative banks across the country. By enforcing penalties, the central bank ensures that financial institutions, regardless of size, operate with accountability and discipline. The Guntur District Co-operative Central Bank serves a large number of customers in Andhra Pradesh. This action signals RBI’s determination to maintain strong oversight on institutions that cater to rural and semi-urban populations.