RBI Slaps ₹18.60 Lakh Penalty on 4 Cooperative Banks for Regulatory Violations
Moneylife Digital Team 28 July 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹18.60 lakh on four cooperative banks for non-compliance with the directions issued by the banking regulator. The highest penalty of ₹10.10 lakh has been imposed on Raigad District Central Cooperative Bank (DCCB) Ltd from Maharashtra.
 
Other banks penalised by RBI are: Sangli DCCB Ltd from Maharashtra, Shajapur Jilla Sahakari Kendriya Bank Maryadit from Madhya Pradesh and Citizen Cooperative Bank Ltd from Karnataka.
 
Raigad DCC Bank has been penalised for violating Section 20(1) of the Banking Regulation Act, 1949 (BR Act), as well as RBI directions on the membership of credit information companies (CICs) by cooperative banks.
 
The action follows a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD), which found that the lender had sanctioned a loan to a director-related entity and failed to report its borrowers' credit information to all credit information companies, as required under RBI regulations.
 
Sangli DCC Bank has been penalised ₹7 lakh also for contravention of provisions of section 20(1) of the BR Act. The lender had sanctioned director-related loans.
 
RBI also inspected Shajapur Jilla Sahakari Kendriya Bank and found out that the lender had failed to transfer eligible unclaimed amounts to the depositor education and awareness fund (DEA Fund) within the prescribed period.
 
As a result, RBI imposed a penalty of ₹1 lakh on Shajapur Jilla Sahakari Kendriya Bank.
 
Karnataka-based Citizen Cooperative Bank has been fined ₹50,000 by RBI for failing to comply with its directions on income recognition, asset classification, provisioning and other related norms applicable to urban cooperative banks (UCBs). During its inspection, RBI found that the lender had failed to classify certain loan accounts as non-performing assets (NPAs).
 
In all four 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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