The Reserve Bank of India (RBI) has levied penalties on two co-operative banks for violations of banking regulations. These are Manipur State Co-operative Bank and Urban Co-operative Bank, Cuttack.
On August 22, 2024, The Manipur State Co-operative Bank Ltd. was fined Rs 2 lakh for contravening provisions of the Banking Regulation Act, 1949, and the Credit Information Companies (Regulation) Act, 2005.
On the same day, The Urban Co-operative Bank Ltd., Cuttack, was penalized Rs 1.5 lakh for non-compliance with RBI’s KYC and exposure norms.
These penalties are based on regulatory lapses, not on the validity of transactions or agreements with customers.
Additionally, the RBI extended restrictions on Ajantha Urban Co-operative Bank Maryadit, Aurangabad, until February 29, 2024.