The Reserve Bank of India (RBI) has imposed monetary penalties on three co-operative banks for violating banking regulations and RBI directions. The penalties were imposed after inspections found non-compliance with regulatory requirements. RBI clarified that these penalties are only for regulatory violations and do not affect the validity of any transactions between the banks and their customers. RBI also said that it may take further action against the banks if required.
₹13.30 Lakh Penalty on Kolhapur District Central Co-op Bank
RBI has imposed a penalty of ₹13.30 lakh on Kolhapur District Central Co-operative Bank Ltd., Maharashtra, through an order dated July 17, 2026.
The action was taken after a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) based on the bank’s financial position as on March 31, 2025. During the inspection, RBI found that the bank had violated provisions of the Banking Regulation Act, 1949 by sanctioning loans related to its directors.
After issuing a show-cause notice, examining the bank’s reply and hearing its submissions, RBI concluded that the violation was established and imposed the monetary penalty.
₹1 Lakh Penalty on Manmad Urban Co-operative Bank
RBI has also imposed a penalty of ₹1 lakh on Manmad Urban Co-operative Bank Ltd., Manmad, Maharashtra, through an order dated July 17, 2026.
The inspection found that the bank had violated RBI’s directions on loans and advances to directors, their relatives and firms in which they have an interest. RBI found that the bank had sanctioned loans to a relative of one of its directors.
After considering the bank’s reply to the show-cause notice, RBI decided that the violation had been proved and imposed the penalty.
₹3 Lakh Penalty on United Puri-Nimapara Central Co-operative Bank
RBI has imposed a penalty of ₹3 lakh on The United Puri-Nimapara Central Co-operative Bank Ltd., Odisha, through an order dated July 14, 2026.
The action followed a statutory inspection conducted by NABARD based on the bank’s financial position as on March 31, 2025. During the inspection, RBI found that the bank had failed to upload customers’ Know Your Customer (KYC) records to the Central KYC Records Registry (CKYCR) within the prescribed time limit.
After reviewing the bank’s reply, additional submissions and oral arguments during the personal hearing, RBI held that the violation was established and imposed the penalty.
