The Reserve Bank of India (RBI) imposed penalties on eight cooperative banks for various shortcomings and omissions. The heaviest fine of Rs 25 lakh was imposed on Kangra Central Cooperative Bank.
The other penalized banks include Citizen Urban Cooperative Bank, Jalandhar; Santrampur Urban Cooperative Bank; Porbandar Commercial Cooperative Bank; Vellore Cooperative Town Bank; Mysore and Chamarajnagar District Central Cooperative Bank; South Canara District Central Cooperative Bank; and Kodungallur Town Cooperative Bank.
The Reserve Bank of India (RBI), through an order dated March 27, 2025, imposed a monetary penalty of Rs 25 lakh on The Kangra Central Cooperative Bank Ltd., Himachal Pradesh, for non-compliance with the conditions under which its banking license was issued.
Similarly, a penalty of Rs 15 lakh was imposed on The Citizens Urban Cooperative Bank Ltd., Jalandhar, for failing to comply with specific directions issued under the ‘Supervisory Action Framework (SAF)’.
The Santrampur Urban Cooperative Bank Ltd., Gujarat, was fined Rs 1 lakh for non-compliance with RBI directions related to ‘Co-operative Banks – Interest Rate on Deposits’ and ‘Know Your Customer (KYC)’.
Porbandar Commercial Cooperative Bank Ltd., Gujarat, and The Vellore Cooperative Town Bank Ltd., Tamil Nadu, were each fined Rs 50,000 for non-compliance with RBI’s KYC regulations.
The Mysore and Chamarajnagar District Cooperative Central Bank Ltd., Karnataka, faced a penalty of Rs 1 lakh for violating provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
The South Canara District Central Cooperative Bank Ltd., Karnataka, received a more significant penalty of Rs 5 lakh for similar contraventions under the Banking Regulation Act.
Kodungallur Town Cooperative Bank Ltd., Kerala, was fined Rs 1 lakh for failing to comply with RBI directives on ‘Management of Advances – UCBs,’ ‘Income Recognition, Asset Classification, Provisioning, and Other Related Matters – UCBs,’ and ‘Interest Rate on Deposits.’
