The Reserve Bank of India (RBI) has imposed monetary penalties on two cooperative banks for non-compliance with regulatory directions.
In an order dated September 8, 2025, the RBI levied a penalty of Rs 50,000 on Sikkim State Co-operative Bank Ltd. for lapses in adhering to norms related to Know Your Customer (KYC) guidelines.
On the same date, the central bank also imposed a penalty of Rs 3 lakh on Progressive Mercantile Co-operative Bank Ltd., Ahmedabad (Gujarat). The bank was found in violation of directives concerning Inspection & Audit Systems in Primary (Urban) Co-operative Banks, Know Your Customer (KYC), and Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorized Electronic Banking Transactions.
The RBI clarified that these penalties are based on regulatory deficiencies and do not affect the validity of any transactions or agreements entered into by the banks with their customers.
