RBI Imposes ₹7.50 Lakh Penalty on Himachal Pradesh State Cooperative Bank
Moneylife Digital Team 14 April 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹7.50 lakh on Himachal Pradesh State Cooperative Bank Ltd for non-compliance with certain directions on know-your-customer (KYC) norms.
 
The statutory inspection of Himachal Pradesh State Cooperative Bank, which was conducted by National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on 31 March 2025, revealed that the lender had failed to put in place a system of periodic review of risk categorisation of accounts, with such periodicity being at least once in six months.
 
After considering the lender’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI says the charges against Himachal Pradesh State Cooperative Bank are sustained, warranting the imposition of a monetary penalty.
 
However, the banking regulator clarified that its action against Himachal Pradesh State 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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