RBI Imposes ₹5 lakh Penalty on Mahila Cooperative Bank from Bengaluru
Moneylife Digital Team 16 June 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹5 lakh on Bengaluru, Karnataka-based Mahila Cooperative Bank Ltd for non-compliance with guidelines regarding loans and advances granted to directors, their relatives and firms or entities in which they have an interest.
 
The statutory inspection of Mahila Cooperative Bank, conducted by RBI with reference to its financial position as of 31 March 2025, revealed that the lender had sanctioned loans related to its directors.
 
After considering Mahila Cooperative Bank's reply to the notice, oral submissions made during the personal hearing, and the additional submissions made by it, RBI says the charges against the lender are sustained and warrant the imposition of a monetary penalty.
 
However, the banking regulator clarified that its action against Mahila Cooperative Bank is based on regulatory compliance deficiencies and is not intended to pronounce on the validity of any transactions or agreements entered into by the Bank with its customers. Further, imposition of a monetary penalty is without prejudice to any other action that may be initiated against the Bank, RBI added.
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