RBI Imposes Over ₹4 Lakh Penalty on 3 Cooperative Banks for Regulatory Lapses
Moneylife Digital Team 06 February 2026
Reserve Bank of India (RBI) has imposed a total penalty of ₹4.05 lakh on three cooperative banks for non-compliance with its regulatory directions. The highest penalty of ₹2 lakh has been imposed on Odisha-based Jeypore Cooperative Urban Bank Ltd and Tripura-based Agartala Cooperative Urban Bank Ltd.
 
Maharashtra-based Daund Urban Cooperative Bank Ltd has been fined ₹5,000.
 
Jeypore Cooperative Urban Bank and Agartala Cooperative Urban Bank have been penalised for failing to comply with certain directions issued by RBI. The violations relate to prescribed exposure norms and statutory or other regulatory restrictions applicable to urban cooperative banks (UCBs).
 
RBI’s statutory inspection found that Jeypore Cooperative Urban Bank and Agartala Cooperative Urban Bank had breached the prudential inter-bank (gross) exposure limit and the prudential inter-bank counterparty limit.
 
The Daund Urban Cooperative Bank has been fined for non-compliance with certain directions issued by RBI on credit information reporting. The lender had failed to submit credit information of its customers to any of the credit information companies (CICs).
 
In all three 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.
Comments
Free Helpline
Legal Credit
Feedback