RBI Imposes ₹5.40 Lakh Penalty on 2 Cooperative Banks from Himachal Pradesh and Maharashtra
Moneylife Digital Team 08 May 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹5.40 lakh on two cooperative banks, one from Mandi in Himachal Pradesh and the other from Maharashtra, for non-compliance with the directions issued by the banking regulator. The highest penalty of ₹5 lakh has been imposed on Himachal Pradesh Gramin Bank.
 
Maharashtra-based Youth Development Cooperative Bank Ltd has been penalised ₹40,000.
 
Himachal Pradesh Gramin Bank has been penalised for violating the provisions of Section 26A of the Banking Regulation Act (BR Act) 1949 and for failing to comply with RBI directions about interest rates on deposits.
 
A recent statutory inspection conducted by RBI found that Himachal Pradesh Gramin Bank had also failed to transfer eligible unclaimed amounts to the depositor education and awareness fund (DEA Fund) within the prescribed timeframe. The inspection also found that the lender did not pay interest on certain term deposits from the date of maturity until the date of repayment
 
Youth Development Cooperative Bank has been penalised for non-compliance with  RBI directions relating to inoperative accounts, unclaimed deposits in banks under the revised instructions and know-your-customer (KYC) norms. RBI observed that the lender had activated some inactive accounts without obtaining KYC documents from the customers.
 
"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," RBI 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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