The Reserve Bank of India (RBI) has imposed monetary penalties on three co-operative banks, two District Central Co-operative Banks (DCCBs) and one Urban Co-operative Bank (UCB), for non-compliance with regulatory provisions and directions.
In one instance, the RBI, by an order dated December 26, 2025, imposed a penalty of Rs 50,000 on The Salem Urban Co-operative Bank Limited, Tamil Nadu. The penalty was levied for non-compliance with RBI directions on the ‘Framework for Compromise Settlements and Technical Write-offs’.
On the same date, December 26, 2025, the central bank imposed a monetary penalty of Rs 1 lakh on The District Co-operative Central Bank Ltd., Warangal, Telangana. The action was taken for contravention of the provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
Separately, the RBI, through an order dated December 22, 2025, imposed a penalty of Rs 2.10 lakh on Kolhapur District Central Co-operative Bank Ltd., Kolhapur, Maharashtra, for violation of the provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
The RBI clarified that these penalties are based on deficiencies in regulatory compliance and do not question the validity of any transaction or agreement entered into by the banks with their customers.
