The Reserve Bank of India (RBI) has imposed monetary penalties on three cooperative banks in Maharashtra for violations of various regulatory norms and provisions of the Banking Regulation Act, 1949.
According to official orders issued in October 2025, the Satara Sahakari Bank Ltd., Mumbai, has been fined Rs 2 lakh for non-compliance with RBI directions on “Prudential Norms on Capital Adequacy – Primary (Urban) Co-operative Banks (UCBs)” and “Limits on exposure to single and group borrowers/parties and large exposures and revision in the target for priority sector lending – UCBs.”
Similarly, the Latur District Central Co-operative Bank Ltd. faced a penalty of Rs 8 lakh for contravening provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949, and for failing to comply with directions on Know Your Customer (KYC) norms.
The Parbhani District Central Co-operative Bank Ltd. was also penalized Rs 1.50 lakh for similar contraventions under the same provisions and for non-compliance with KYC-related directions.
The RBI clarified that these penalties are based on deficiencies in regulatory compliance and do not question the validity of any transactions or agreements entered into by the banks with their customers.