RBI Imposes ₹17.30 Lakh Penalty on 2 Cooperative Banks from Maharashtra, 1 from Odisha
Moneylife Digital Team 21 July 2026
Reserve Bank of India (RBI) has imposed a total penalty of ₹17.30 lakh on two cooperative banks from Maharashtra and one from Odisha for non-compliance with its regulatory directions. The highest penalty of ₹13.30 lakh has been imposed on Maharashtra-based Kolhapur District Central Cooperative (DCC) Bank Ltd.
 
Other banks penalised by RBI are: United Puri-Nimapara Central Cooperative Bank Ltd from Odisha and Manmad Urban Cooperative Bank Ltd from Maharashtra.
 
Kolhapur DCC Bank has been penalised for non-compliance with certain provisions of section 20(1) of the Banking Regulation Act, 1949 (BR Act).
 
The statutory inspection of Kolhapur DCC Bank, conducted by RBI with reference to its financial position as of 31 March 2025, revealed that the lender had sanctioned director-related loans.
 
Odisha-based United Puri-Nimapara Central Cooperative Bank has been penalised ₹3 lakh for non-compliance with certain directions on know-your-customer (KYC) issued by RBI.
 
The statutory inspection of United Puri-Nimapara Central Cooperative Bank, conducted by the National Bank for Agriculture and Rural Development (NABARD), found that the lender had failed to upload customers’ KYC records to the central KYC records registry (CKYCR) within the prescribed timeline.
 
RBI also inspected Manmad Urban Cooperative Bank and found out that the lender had also sanctioned loans to the relative of its director. As a result, RBI imposed a penalty of ₹1 lakh on the lender.
 
The central bank says, "After considering the reply and oral submissions of all banks during the personal hearing, RBI concluded that the charges of non-compliance with RBI directions were substantiated and warranted imposition of a monetary penalty."
 
In all these cases, RBI says the penalties are based on deficiencies in regulatory compliance and are not intended to be pronounced on the validity of any transaction or agreement they entered with their customers.
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