RBI imposed Monetary Penalty on 5 Banks in India, Know Reason and Details
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The Reserve Bank of India (RBI) has imposed monetary penalty on 5 Banks. Read below to find out the reason of these penalties.
RBI imposes monetary penalty on The Kasaragod Co-operative Town Bank Limited, Kasaragod, Kerala
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on The Kasaragod Co-operative Town Bank Limited, Kasaragod, Kerala (the bank) for non-compliance with certain directions issued by RBI on ‘Limits on exposure to single and group borrowers / parties and large exposures and Revision in the target for priority sector lending – UCBs’, ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs)’ and ‘Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs)’.
The penalty has been imposed as the bank had:
- sanctioned loans and advances to certain connected borrowers beyond the applicable group exposure limit; and
- not implemented certain cyber security control measures and requirements under the Cyber Security Framework prescribed by RBI.
RBI imposes monetary penalty on The Nalgonda District Co-operative Central Bank Ltd., Telangana
The Reserve Bank of India (RBI) has, by an order August 07, 2025, imposed a monetary penalty of ₹2.50 lakh (Rupees Two Lakh Fifty Thousand only) on The Nalgonda District Co-operative Central Bank Ltd., Telangana (the bank) for contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
The penalty has been imposed as the bank had sanctioned loans to its directors.
RBI imposes monetary penalty on The Utkal Cooperative Bank Limited, Bhubaneswar
The Reserve Bank of India (RBI) has, by an order dated August 05, 2025, imposed a monetary penalty of ₹2.53 lakh (Rupees Two Lakh Fifty Three Thousand only) on The Utkal Cooperative Bank Limited, Bhubaneswar (the bank) for non-compliance with specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’ and certain directions issued on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’ and ‘Know Your Customer (KYC)’.
The penalty has been imposed as the bank had:
- incurred capital expenditure without prior approval of RBI in non-adherence to directions under SAF;
- failed to submit credit information of customers to three Credit Information Companies;
- failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR); and
- failed to put in place a system of periodic review of risk categorisation of accounts with such periodicity being at least once in six months.
RBI imposes monetary penalty on District Central Co-operative Bank Ltd., Bilaspur, Chhattisgarh
The Reserve Bank of India (RBl) has imposed, by an order dated August 07, 2025, a monetary penalty of ₹1 lakh (Rupees One Lakh only) on District Central Co-operative Bank Ltd., Bilaspur, Chhattisgarh (the bank) for contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
The penalty has been imposed as the bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time.
RBI imposes monetary penalty on Altum Credo Home Finance Private Limited, Pune, Maharashtra
The Reserve Bank of India (RBI) has, by an order dated August 06, 2025, imposed a monetary penalty of ₹10,000 (Rupees Ten Thousand only) on Altum Credo Home Finance Private Limited, Pune, Maharashtra (the company) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’.
The penalty has beem imposed as the company had failed to put in place a system of periodic review of risk categorisation of accounts, with such periodicity being at least once in six months.
