Archive · 30 Jun 2025
RBI Fines Two Cooperative Banks for Regulatory Breaches
The Reserve Bank of India (RBI) fined two cooperative banks for not following rules.
One bank, Shree Kadi Nagarik Sahakari Bank, was fined for giving money to a trust related to a director and for not checking how some loans were used.
This bank was fined Rs 14.30 lakh.
The other bank, Saibaba Nagari Sahakari Bank, was fined because it didn't update customer information as required.
This bank's fine was Rs 50,000.
The RBI said these fines are for not following rules, not because of any problems with the banks' customers' money.
RBI penalized Shree Kadi Nagarik Sahakari Bank Ltd for violating donation and loan management guidelines.
The penalty for Shree Kadi Nagarik Sahakari Bank Ltd is Rs 14.30 lakh.
RBI also penalized Saibaba Nagari Sahakari Bank Maryadit for non-compliance with KYC norms.
Saibaba Nagari Sahakari Bank Maryadit's penalty is Rs 50,000.
The actions were based on inspections as of March 31, 2024.
- Who
- RBI, Shree Kadi Nagarik Sahakari Bank Ltd, and Saibaba Nagari Sahakari Bank Maryadit.
- What
- RBI imposed monetary penalties on two co-operative banks.
- When
- Orders were dated June 24 and June 26.
- Where
- Mumbai, India and specific locations of the banks.
- Why
- For failing to comply with regulatory directions on donations, loan management, and KYC norms.
- RBI Action
- Imposed penalties
- Banks Penalized
- 2
- Shree Kadi Penalty
- Rs 14.30 lakh
- Saibaba Nagari Penalty
- Rs 50,000
- Reason for Penalties
- Regulatory violations
- Inspection Date
- March 31, 2024