The Reserve Bank of India (RBI) has imposed monetary penalties on four cooperative banks across the country for various regulatory and statutory violations identified during inspections conducted with reference to their financial position as of March 31, 2025.
The highest penalty of Rs 5 lakh was imposed on Hutatma Sahakari Bank Ltd., Walva, Maharashtra, for sanctioning loans to a relative of one of its directors, in violation of RBI norms governing lending to directors and related parties.
Sultanpur Jilla Sahkari Bank Ltd., Uttar Pradesh, was fined Rs 3 lakh for multiple compliance lapses, including failure to submit borrower data to all four Credit Information Companies (CICs), inadequate KYC monitoring systems, shortcomings in suspicious transaction reporting, and delayed transfer of eligible unclaimed deposits to the Depositor Education and Awareness Fund.
Meanwhile, The Chittoor District Co-operative Central Bank Ltd., Andhra Pradesh, and The Shimoga District Co-operative Central Bank Ltd., Karnataka, were each penalized Rs 1 lakh for sanctioning or renewing loans linked to directors, contravening provisions of the Banking Regulation Act.
The RBI clarified that these penalties are based on deficiencies in regulatory and statutory compliance and do not affect the validity of transactions entered into by the banks with their customers. Further supervisory action may follow where necessary.
