RBI Imposes Rs6 Lakh Penalty on 3 Cooperative Banks and Valuecorp Securities & Finance
Moneylife Digital Team 30 December 2025
Reserve Bank of India (RBI) has imposed penalties totalling Rs6 lakh on three cooperative banks and one non-banking financial company (NBFC) for failing to comply with the directions issued by the banking regulator. The highest penalty of ₹2.40 lakh has been imposed on Valuecorp Securities & Finance Ltd, an NBFC based in Mumbai (Maharashtra).
 
Valuecorp Securities & Finance has been penalised for non-compliance with certain RBI directions relating to the submission of data to credit information companies (CICs), transfer of loan exposure and adherence to know-your-customer (KYC) norms.
 
RBI’s statutory inspection found that Valuecorp Securities & Finance had multiple regulatory lapses. The NBFC failed to submit its customer's credit information to any (CIC), transferred loan exposure to entities not permitted under the regulations, did not assign unique customer identification codes (UCICs) to its customers and failed to carry out risk categorisation of its clientele.
 
Kolhapur District Central Cooperative Bank has been penalised ₹2.10 lakh for contravention of the provisions of Section 20 of the Banking Regulation Act, 1949 (BR Act).The lender had sanctioned a loan to a company, in which one of the directors of the Bank stood as a guarantor.
 
RBI conducted a statutory inspection of Telangana-based District Cooperative Central Bank and found that the lender had sanctioned director related loans.
 
As a result, RBI imposed a penalty of ₹1 lakh on District Cooperative Central Bank. 
 
Further, Salem Urban Cooperative Bank  from Tamil Nadu has been fined ₹50,000 for non-compliance with certain directions issued by RBI on framework for compromise settlements and technical write-offs. The lender had sanctioned non-agricultural loans to members, who had previously availed compromise settlements, without adhering to the prescribed minimum cooling period. 
 
In all four cases, RBI said 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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