The Reserve Bank of India (RBI) has imposed monetary penalties on three District Central Cooperative Banks and one Urban Cooperative Bank from Karnataka for various regulatory violations.
By separate orders dated November 20, 2025, the RBI levied a penalty of Rs 2 lakh on the Fatehpur District Co-operative Bank Ltd., Uttar Pradesh for non-compliance with RBI’s Know Your Customer (KYC) directions.
A penalty of Rs 1 lakh has been imposed on the District Co-operative Central Bank Ltd., Kakinada, Andhra Pradesh for contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
Similarly, The District Co-operative Central Bank Ltd., Kurnool, Andhra Pradesh has been fined Rs 1.50 lakh for violations related to Section 20 read with Section 56 of the BR Act and non-compliance with KYC norms.
In Karnataka, Tumkur Grain Merchants Co-operative Bank Ltd. has been penalized Rs 1 lakh for non-compliance with RBI’s directives under the Supervisory Action Framework (SAF).
The RBI clarified that the penalties are based on deficiencies in regulatory compliance and do not question the validity of transactions or agreements between the banks and their customers.
