RBI Imposes Rs11.60 Lakh Penalty on 3 Cooperative Banks and 1 HFC from Maharashtra
Moneylife Digital Team 05 November 2025
Reserve Bank of India (RBI) has imposed penalties of Rs11.60 lakh on three cooperative banks and one housing finance company (HFC) from Maharashtra for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs8 lakh has been imposed on Latur District Central Cooperative (DCC) Bank Ltd.
 
Other entities penalised by RBI include: Parbhani DCC Bank Ltd, Satara Sahakari Bank Ltd, and Viva Home Finance Ltd, an HFC.
 
Latur DCC Bank has been penalised for contravention of provisions of Section 20 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with directions issued by RBI on know-your-customers (KYC).
 
RBI’s statutory inspection revealed that Latur DCC Bank had sanctioned and renewed certain loans related to its directors and failed to upload the KYC records of some customers to the central KYC records registry (CKYCR) within the prescribed timeline.
 
Satara Sahakari Bank has been fined Rs2 lakh for non-compliance with certain RBI directions related to prudential norms on capital adequacy for primary urban cooperative banks (UCBs), limits on exposure to single and group borrowers, large exposure norms and revised targets for priority sector lending for UCBs.The lender had refunded share capital, despite its CRAR being less than the regulatory minimum and breached prudential single borrower exposure limit in certain instances. 
 
RBI’s statutory inspection of Parbhani DCC Bank revealed that the lender had sanctioned certain loans related to its directors and failed to implement robust software capable of generating alerts when transactions were inconsistent with customers’ risk categorisation or updated profiles, which is essential for effectively identifying and reporting suspicious transactions.
 
As a result, RBI imposed a penalty of Rs1.50 lakh on Parbhani DCC Bank.
 
Viva Home Finance, an HFC based in Maharashtra, has been fined Rs10,000 for non-compliance with certain provisions of the RBI’s Non-Banking Financial Company (NBFC) – Housing Finance Company (Reserve Bank) Directions, 2021. The HFC failed to obtain prior written approval from the RBI for appointing a whole-time director (WTD) which led to a change in more than 30% of its board members, excluding independent directors.
 
In all four cases, RBI says the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce on the validity of any transaction or agreement they entered into with their customers.
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