RBI Imposes ₹5 Lakh Fine on Ganganagar Kendriya Sahkari Bank and Berhampur Cooperative Bank
Moneylife Digital Team 13 February 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹5 lakh on two cooperative banks for non-compliance with the directions issued by the banking regulator. The highest penalty of ₹3 lakh has been imposed on Rajasthan-based Ganganagar Kendriya Sahkari Bank Ltd.
 
Berhampur Cooperative Urban Bank Ltd from Odisha was penalised ₹2 lakh.
 
Ganganagar Kendriya Sahkari Bank has been penalised for non-compliance with certain directions issued by RBI on know-your-customer (KYC).
 
RBI statutory inspection of Ganganagar Kendriya Sahkari Bank, which was conducted by National Bank for Agriculture and Rural Development (NABARD), revealed that the lender had failed to put in place a system for the periodic review of risk categorisation of accounts, with such reviews required to be carried out at least once every six months. The inspection also found that the lender did not undertake periodic updation of customers' KYC details in line with the prescribed timelines.
 
Odisha-based Berhampur Cooperative Urban Bank has been penalised for non-compliance with certain directions issued by the RBI regarding exposure norms and the statutory or other restrictions applicable to urban cooperative banks (UCBs). RBI found out that the lender had breached the prudential inter-bank (gross) exposure limit and interbank counterparty limit.
 
"After considering the reply and oral submissions of both the banks during the personal hearing, RBI concluded that the charges of non-compliance with directions were substantiated and warranted imposition of monetary penalty," the central bank says.
 
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 into with their customer.
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