- The Reserve Bank of India (RBI) has slapped monetary penalties on three cooperative banks in Maharashtra for breaching various regulatory norms and the provisions of the Banking Regulation Act, 1949.
- In official orders released in October 2025, the Satara Sahakari Bank Ltd., located in Mumbai, was fined Rs 2 lakh for not following RBI guidelines on “Prudential Norms on Capital Adequacy – Primary (Urban) Co-operative Banks (UCBs)” and “Limits on exposure to single and group borrowers/parties and large exposures and revision in the target for priority sector lending – UCBs.” Likewise, the Latur District Central Co-operative Bank Ltd.
- was hit with an Rs 8 lakh penalty for violating Section 20 in conjunction with Section 56 of the Banking Regulation Act, 1949, and for not adhering to Know Your Customer (KYC) norms.
- The Parbhani District Central Co-operative Bank Ltd.
- also faced a fine of Rs 1.50 lakh for similar violations under the same provisions and for failing to comply with KYC-related directives.
The Reserve Bank of India (RBI) has slapped monetary penalties on three cooperative banks in Maharashtra for breaching various regulatory norms and the provisions of the Banking Regulation Act, 1949.
In official orders released in October 2025, the Satara Sahakari Bank Ltd., located in Mumbai, was fined Rs 2 lakh for not following RBI guidelines on “Prudential Norms on Capital Adequacy – Primary (Urban) Co-operative Banks (UCBs)” and “Limits on exposure to single and group borrowers/parties and large exposures and revision in the target for priority sector lending – UCBs.”
Likewise, the Latur District Central Co-operative Bank Ltd. was hit with an Rs 8 lakh penalty for violating Section 20 in conjunction with Section 56 of the Banking Regulation Act, 1949, and for not adhering to Know Your Customer (KYC) norms.
The Parbhani District Central Co-operative Bank Ltd. also faced a fine of Rs 1.50 lakh for similar violations under the same provisions and for failing to comply with KYC-related directives.
The RBI made it clear that these penalties stem from lapses in regulatory compliance and do not challenge the legitimacy of any transactions or agreements made by the banks with their customers.