The Reserve Bank of India (RBI) has imposed monetary penalties on two co-operative banks for breaching regulatory guidelines.
On June 26, the RBI levied a fine of ₹14.30 lakh on Shree Kadi Nagarik Sahakari Bank Ltd., based in Gujarat&rsquo;s Mehsana district. This action followed a statutory inspection as of March 31, 2024, which revealed the bank had violated rules regarding donations to trusts connected to its directors' relatives and failed to monitor the end-use of sanctioned loans.
After reviewing the bank&rsquo;s written and oral submissions, the RBI confirmed the violations and issued the penalty accordingly.
In a separate order dated June 24, the RBI also fined Saibaba Nagari Sahakari Bank Maryadit in Sailu, Maharashtra, ₹50,000 for failing to comply with Know Your Customer (KYC) norms.
The bank did not upload certain customer records to the Central KYC Records Registry (CKYCR) on time and failed to conduct scheduled KYC updates. These lapses also surfaced during an inspection of its March 2024 financials.
The RBI clarified that these penalties are for compliance failures and do not impact the validity of any customer transactions or agreements. The regulator added that further actions may be taken if warranted.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]

RBI Fines Two Co-operative Banks for Regulatory Lapses

RBI penalises Gujarat and Maharashtra co-operative banks for violating donation and KYC norms.

RBI Fines Two Co-operative Banks for Regulatory Lapses

RBI penalises Gujarat and Maharashtra co-operative banks for violating donation and KYC norms.

July 1, 2025 | 24:48 IST