The Reserve Bank of India (RBI) has imposed monetary penalties on four cooperative banks for various violations of the Banking Regulation Act, 1949, and non-compliance with RBI directions. The penalties were imposed through separate orders issued earlier this month.
The District Central Co-operative Bank Ltd., Bilaspur, Chhattisgarh, was fined Rs 1 lakh by an order dated August 7, 2025, for contravention of provisions under Section 26A read with Section 56 of the Act.
The Utkal Cooperative Bank Limited, Bhubaneswar, faced a penalty of Rs 2.53 lakh, imposed on August 5, 2025, for non-compliance with RBI’s ‘Supervisory Action Framework (SAF)’ and specific directions on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’ and ‘Know Your Customer (KYC)’.
The Nalgonda District Co-operative Central Bank Ltd., Telangana, was fined Rs 2.50 lakh on August 7, 2025, for violations of Section 20 read with Section 56 of the Act.
The Kasaragod Co-operative Town Bank Limited, Kerala, was penalised Rs 1 lakh on August 7, 2025, for breaching exposure limits to single and group borrowers, failing to meet revised priority sector lending targets, and non-compliance with RBI’s cyber security framework for Urban Cooperative Banks.
RBI clarified that the penalties are based on lapses in regulatory compliance and do not question the validity of transactions or agreements made with customers.
