The Reserve Bank of India (RBI) has imposed monetary penalties of Rs 2 lakh each on three cooperative banks in Rajasthan, Maharashtra, and Gujarat for non-compliance with various regulatory directions.
The Jalore Central Co-operative Bank Limited was penalised for failing to periodically review risk categorisation of accounts and for not updating customer KYC records within the prescribed timelines. The action followed a statutory inspection conducted by National Bank for Agriculture and Rural Development (NABARD).
Shree Laxmi Co-operative Bank Ltd. faced RBI action for multiple lapses, including delay in uploading KYC records to CKYCR, failure to review inactive accounts, and levying penal charges without informing customers.
Meanwhile, The Lunawada People’s Co-operative Bank Ltd. was fined for violating RBI norms on loans and advances after sanctioning loans in which relatives of directors acted as guarantors.
The RBI clarified that the penalties relate to regulatory compliance deficiencies and do not affect the validity of customer transactions.