The Reserve Bank of India (RBI) has imposed monetary penalties on three cooperative banks, Bathinda Central Cooperative Bank, Citizen Cooperative Bank, Noida, and Jammu and Kashmir State Cooperative Bank, for various violations of regulatory provisions.
By an order dated May 30, 2025, the RBI imposed a penalty of Rs 3 lakh on the Bathinda Central Co-operative Bank Ltd., Bathinda, Punjab, for contravention of provisions under Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
On the same date, the RBI also levied a penalty of Rs 6 lakh on the Citizen Co-operative Bank Ltd., Noida, for violations of Section 12B read with Section 56 of the BR Act, as well as non-compliance with RBI’s directions on ‘Know Your Customer (KYC)’ norms.
In a third instance, the Jammu and Kashmir State Co-operative Bank Ltd., Srinagar, was penalized Rs 2 lakh for non-compliance with RBI’s KYC directives. This action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The RBI clarified that these penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transactions or agreements entered into by the banks with their customers.
