The Reserve Bank of India (RBI) has imposed monetary penalties on four cooperative banks across Karnataka and Maharashtra for violations of various regulatory guidelines.
By orders issued between July 16 and 18, 2025, the RBI penalized the Government Employees Co-operative Bank Dharwad, Karnataka with Rs 1 lakh for non-compliance with norms related to Know Your Customer (KYC) and the Comprehensive Cyber Security Framework for Urban Cooperative Banks (UCBs).
In Maharashtra, Sahyadri Sahakari Bank, Mumbai was fined Rs 20,000 for violating directions under the Supervisory Action Framework (SAF).
Motiram Agrawal Jalna Merchants Co-operative Bank, Jalna faced the highest penalty of Rs 6 lakh for breaching RBI norms on loans and advances to directors and related parties, as well as limits on exposures to single/group borrowers and priority sector lending targets.
Further, Shahada Peoples Co-operative Bank, Shahada was fined Rs 2 lakh for non-compliance with RBI directions on Income Recognition, Asset Classification, and Provisioning (IRAC) norms.
