RBI Imposes Rs1.25 Lakh Penalty on 3 Cooperative Banks for Non-compliance
Moneylife Digital Team 25 February 2025
Reserve Bank of India (RBI) has imposed a penalty of Rs1.25 lakh on three cooperative banks for non-compliance with the directions issued by the banking regulator. 
 
Gulbarga and Yadgir District Cooperative Central (DCC) Bank Ltd from Karnataka and Guntur DCC Bank Ltd from Andhra Pradesh were penalised Rs50,000 each, while Mahila Sahakari Bank Ltd from Gujarat was fined Rs25,000.
 
Gulbarga and Yadgir DCC Bank has been penalised for non-compliance with directions issued by the National Bank for Agriculture and Rural Development (NABARD) in exercise of powers conferred under Section 27(3) of the Banking Regulation Act (BR Act) on offsite surveillance system-revision of due dates for submission of offsite surveillance system (OSS) / fraud monitoring system (FMS) returns.
 
RBI's statutory inspection revealed that Gulbarga and Yadgir DCC Bank failed to submit the statutory returns to NABARD within the prescribed timeline.
 
Guntur District Cooperative Central Bank has been fined for contravention of provisions of Section 31 of the BR Act. The lender failed to publish its accounts and balance sheet for FY22-23 and also failed to furnish the copies to RBI and NABARD within the prescribed timeline.
 
Gujarat-based Mahila Sahakari Bank was penalised for non-compliance with directions issued by RBI on know-your-customer (KYC). The lender failed to upload the KYC records of customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline.
 
RBI says its action against these three cooperative banks is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the banks with their customers.
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