RBI Imposes ₹3.50 Lakh Penalty on 2 Cooperative Banks from Haryana and Maharashtra
Moneylife Digital Team 09 June 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹3.50 lakh on two cooperative banks, one from Haryana and the other from Maharashtra, for non-compliance with the directions issued by the banking regulator. The highest penalty of ₹3 lakh has been imposed on Karnal Central Cooperative Bank Ltd from Haryana.
 
Maharashtra-based Amravati Merchants Sahakari Bank Ltd has been penalised ₹50,000.
 
Karnal Central Cooperative Bank has been fined for failing to comply with certain RBI directions related to the know-your-customer (KYC) norms.
 
A recent statutory inspection by RBI found that Karnal Central Cooperative Bank had failed to implement a system for periodic review of the risk categorisation of customer accounts. The inspection also revealed that the lender had not implemented a robust software system for the effective identification and reporting of suspicious transactions.
 
Amravati Merchants Sahakari Bank has been penalised for non-compliance with RBI directions on loans and advances granted to directors, their relatives, and firms or concerns in which they have an interest. The lender was found to have sanctioned certain loans to entities connected with its directors, in violation of these regulatory norms.
 
"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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