RBI Imposes ₹2.23 Lakh Penalty on 2 Cooperative Banks from Maharashtra
Moneylife Digital Team 01 September 2026
Reserve Bank of India (RBI) has imposed a total penalty of ₹2.23 lakh on two cooperative banks from Maharashtra for non-compliance with its regulatory directions. The highest penalty of ₹2.03 lakh has been imposed on Maharashtra Pune-based Jai Bhawani Sahakari Bank Ltd while Mumbai District Central Cooperative (DCC) Bank Ltd has been penalised ₹20,000.
 
Jai Bhawani Sahakari Bank has been penalised for non-compliance with certain directions relating to membership of credit information companies (CICs) by cooperative banks and know-your-customer (KYC) requirements.
 
The statutory inspection of Jai Bhawani Sahakari Bank, conducted by RBI with reference to the Bank’s financial position as of 31 March 2025, revealed that the lender had failed to comply with certain regulatory requirements.
 
Jai Bhawani Sahakari Bank failed to report its borrowers' credit information to all CICs. It also failed to review the risk categorisation of accounts at the prescribed periodicity, as required under RBI’s KYC directions.
 
Mumbai DCC Bank has been penalised for non-compliance with directions issued by RBI on KYC. The lender had failed to upload the KYC records of customers onto the central KYC records registry (CKYCR) within the prescribed timeline. 
 
RBI 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 both 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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