The Reserve Bank of India (RBI) has imposed monetary penalties on three cooperative banks for violating various regulatory guidelines, including norms related to KYC compliance, exposure limits and risk management.
In an order dated December 5, 2025, the RBI levied a penalty of Rs 1.50 lakh on The Pattukottai Co-operative Urban Bank Ltd., Tamil Nadu. The action was taken for contravention of Section 17 of the Banking Regulation Act, 1949 and non-compliance with RBI directives on Exposure Norms, Statutory/Other Restrictions for UCBs, and Know Your Customer (KYC) guidelines.
Separately, through an order dated December 1, 2025, the central bank imposed a penalty of Rs 50,000 on The Assam Co-operative Apex Bank Ltd., Guwahati for non-compliance with KYC guidelines.
In another action, the RBI penalised The Yavatmal Urban Co-operative Bank Ltd., Maharashtra, through an order dated December 4, 2025, imposing a fine of Rs 2.25 lakh. The bank was found to be in violation of RBI directions on Concentration Risk Management, Treatment of Wilful and Large Defaulters, and Credit Information Reporting.
The RBI clarified that the penalties were based on deficiencies in regulatory compliance and do not affect the validity of transactions or agreements entered into by the banks with their customers.
