RBI Imposes Rs26 Lakh Penalty on 2 Cooperative Banks
Moneylife Digital Team 31 October 2025
Reserve Bank of India (RBI) has imposed a penalty of Rs26 lakh on two cooperative banks for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs25 lakh has been imposed on Gujarat-based Mehsana Urban Cooperative Bank Ltd.
 
Parner Taluka Sainik Sahakari Bank Ltd from Maharashtra has been penalised Rs1 lakh.
 
Mehsana Urban Cooperative Bank has been penalised for non-compliance with directions issued by RBI on income recognition, asset classification, provisioning and other related matters in urban cooperative banks (UCBs).
 
RBI statutory inspection found that the lender did not classify the credit facilities of certain borrowers as non-performing assets (NPAs).
 
Similarly, during its inspection of Parner Taluka Sainik Sahakari Bank, RBI found that the lender had regularised certain NPAs without actual repayment from genuine sources, constituting another instance of non-compliance.
 
As a result, RBI penalised Parner Taluka Sainik Sahakari Bank.
 
"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," the central bank 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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