RBI Imposes ₹4.10 Lakh Penalty on 5 Cooperative Banks
Moneylife Digital Team 19 June 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹4.10 lakh on five cooperative banks for non-compliance with the directions issued by the banking regulator. The highest penalty of ₹2.10 lakh has been imposed on Nasik Road Deolali Vyapari Sahakari Bank Ltd.
 
Other banks penalised by RBI are Wardha District Ashirwad Mahila Nagari Sahakari Bank Maryadit and Navapur Mercantile Cooperative Bank Ltd from Maharashtra, Chitradurga District Cooperative Central Bank Ltd from Karnataka and Sarvodaya Commercial Cooperative Bank Ltd from Gujarat.
 
Nasik Road Deolali Vyapari Sahakari Bank has been penalised by the RBI for non-compliance with regulatory directions governing loans and advances to directors, their relatives and firms or entities in which they have an interest.
 
The statutory inspection of Nasik Road Deolali Vyapari Sahakari Bank, which was conducted by RBI with reference to its financial position as on 31 March 2025, revealed that the lender had sanctioned loans to the relatives of its directors.
 
Chitradurga District Cooperative Central Bank has been penalised by RBI for violating provisions of Section 20 of the Banking Regulation Act (BR Act) 1949 and for failing to comply with certain RBI directions on know-your-customer (KYC) norms.
 
The statutory inspection of Chitradurga District Cooperative Central Bank conducted by the National Bank for Agriculture and Rural Development (NABARD) revealed that the lender had sanctioned loans to directors and related parties. The inspection also found that the bank failed to upload customers' KYC records to the central KYC records registry (CKYCR) within the prescribed timelines.
 
RBI also inspected Sarvodaya Commercial Cooperative Bank and found out that the lender had levied penal charges for non-maintenance of minimum balances in certain inactive accounts.
 
As a result, RBI imposed a penalty of ₹20,000 on the lender, Sarvodaya Commercial Cooperative Bank.
 
Maharashtra-based Wardha District Ashirwad Mahila Nagari Sahakari Bank Maryadit has also been penalised ₹20,000 for non-compliance with certain RBI directions relating to exposure norms and statutory or other restrictions applicable to urban cooperative banks (UCBs). The lender was found to have breached the prescribed regulatory ceiling on certain advances.
 
Further, Navapur Mercantile Cooperative Bank Ltd has been penalised with a fine of ₹10,000 for violating the provisions of Section 35(2) of the BR Act. During the RBI inspection, the lender failed to furnish the information requested by the inspecting officer, leading to the regulatory action.
 
In all five cases, RBI says the penalties are based on deficiencies in regulatory compliance and are not intended to affect the validity of any transaction or agreement they entered into with their customers.
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