The Reserve Bank of India (RBI) has imposed monetary penalties on five cooperative banks for various regulatory non-compliances, with the Tripura State Cooperative Bank facing the highest fine of Rs 7.50 lakh.
According to RBI’s order dated September 2, 2025, Tripura State Cooperative Bank was penalized for non-compliance with directions on Know Your Customer (KYC) norms.
On September 3, 2025, RBI imposed a penalty of Rs 1 lakh on Ottapalam Co-operative Urban Bank Ltd., Palakkad, Kerala, citing non-compliance with the Supervisory Action Framework (SAF) and violations under the Master Direction on Credit and Debit Card issuance and conduct (2022).
Similarly, Bidar District Co-operative Central Bank Ltd., Karnataka was fined Rs 5.50 lakh for contravening provisions of Sections 20 and 31 read with Section 56 of the Banking Regulation Act, 1949.
In Maharashtra, Raigad District Central Co-operative Bank Ltd. was penalized Rs 2.10 lakh for contravention of Section 20 of the Banking Regulation Act, 1949.
Further, by an order dated September 2, 2025, RBI imposed a penalty of Rs 1.60 lakh on Manipur Women’s Co-operative Bank Ltd. for non-compliance with directions related to Exposure Norms and Statutory/Other Restrictions for UCBs.
The central bank clarified that the penalties are based on lapses in regulatory compliance and are not intended to question the validity of any transactions or agreements made by these banks with their customers.
