The Reserve Bank of India (RBI) recently imposed monetary penalties on two co-operative banks for regulatory non-compliance. Bally Co-operative Bank Ltd., Howrah, West Bengal, was fined Rs 1.10 lakh on November 6, 2024, for not meeting Priority Sector Lending (PSL) targets and failing to contribute to the Micro and Small Enterprises (MSE) Refinance Fund, as required by RBI directives.
Despite repeated notices, the bank did not address the shortfall, leading to the penalty.
Separately, on November 5, 2024, RBI fined The Sathamba People’s Co-operative Bank Ltd., Aravalli, Gujarat, Rs 50,000 for Know Your Customer (KYC) violations, including neglecting KYC updates and risk categorization reviews.
RBI emphasized that these penalties stem from regulatory lapses and do not affect customer agreements. Further actions may be taken if these compliance issues persist.
