The Reserve Bank of India (RBI) has imposed monetary penalties on five cooperative banks in Karnataka, Gujarat, and Tamil Nadu for non-compliance with various regulatory norms.
The central bank, through separate orders dated August 19 and August 21, 2025, cited deficiencies in compliance with directions under the Banking Regulation Act, 1949 and other RBI guidelines.
In Karnataka, the Bharat Co-operative Bank Ltd., Bengaluru was fined Rs 50,000 for non-compliance under the Supervisory Action Framework (SAF).
The Kalaburagi and Yadgir District Co-operative Central Bank also faced a penalty of Rs 50,000 for lapses in adhering to Know Your Customer (KYC) norms.
Meanwhile, the Bellary District Co-operative Central Bank was penalized Rs 1.50 lakh for contravention of provisions of Sections 19 and 20 read with Section 56 of the Banking Regulation Act, 1949.
In Gujarat, the Anand Mercantile Co-operative Bank Ltd. was directed to pay a penalty of Rs 2 lakh for failing to comply with RBI guidelines on managing risks in outsourcing of financial services and violations of KYC norms.
Similarly, in Tamil Nadu, the Dharmapuri District Central Co-operative Bank Ltd. was fined Rs 1 lakh for contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
