The Reserve Bank of India (RBI) has imposed monetary penalties on four cooperative banks across Maharashtra and Gujarat for violations of regulatory guidelines.
Among the penalized institutions is the Laxmi Vishnu Sahakari Bank Ltd., Ichalkaranji, Maharashtra, which has been fined Rs 20,000 for non-compliance with RBI directions related to “Loans and advances to directors, their relatives, and firms/concerns in which they are interested.”
In a separate order dated July 14, 2025, Thane District Central Co-operative Bank Ltd., Thane, has been penalized Rs 2.10 lakh for lapses in adherence to the Know Your Customer (KYC) norms. The violation indicates gaps in customer due diligence and monitoring practices, which are crucial for preventing fraud and ensuring financial transparency.
Two Gujarat-based banks have also faced regulatory action. The Sarvodaya Nagrik Sahakari Bank Ltd., Himatnagar, District Sabarkantha, was fined Rs 3 lakh for failing to comply with RBI’s directions on the Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) and the Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems. The penalty reflects growing concern over cybersecurity and customer service reliability in the cooperative banking sector.
Additionally, the Mandvi Nagrik Sahakari Bank Ltd., Mandvi, District Surat, was penalized Rs 2 lakh for non-compliance with RBI’s directives on Management of Advances by Urban Cooperative Banks.
The RBI clarified that the penalties are based on deficiencies in regulatory compliance and are not intended to question the validity of any transaction or agreement entered into by the banks with their customers.