Reserve Bank of India Imposes Penalties on Multiple Banks for Regulatory Violations
Reserve Bank of India Imposes Penalties on Multiple Banks for Regulatory Violations
The Reserve Bank of India (RBI) has recently imposed penalties on several banks and non-banking financial companies through official orders for non-compliance with banking norms. RBI used its legal powers under the Banking Regulation Act to take this action.
The following are the penalties imposed on banks and non-banking financial companies:
The Tanur Co-operative Urban Bank Limited, Kerala
The Reserve Bank of India (RBI) fined The Tanur Cooperative Urban Bank Limited in Kerala Rs 50,000 on March 20, 2026. The penalty order was given because of the non-compliance with some KYC (Know Your Customer) rules.
The Kodagu District Co-operative Central Bank Limited, Karnataka
The Reserve Bank of India (RBI) fined The Kodagu District Co-operative Central Bank Limited Rs 1 lakh on March 20, 2026, for violating provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
The Mysore and Chamarajnagar District Co-operative Central Bank Limited, Karnataka
The Reserve Bank of India (RBI) fined The Mysore and Chamarajnagar District Co-operative Central Bank Limited Rs 1 lakh on March 20, 2026, for violating provisions of Section 19 read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with some KYC (Know Your Customer) rules.
Vedvyas Finance Private Limited
The Reserve Bank of India (RBI) fined Vedvyas Finance Private Limited, Odisha, Rs 30,000 on March 16, 2026, for non-compliance with some rules issued by the RBI on ‘Governance’.
Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd., Niphad, Maharashtra
The Reserve Bank of India (RBI) fined Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd, Rs 30,000 on March 11, 2026, for non-compliance with loans and advances to directors, their relatives, and firms/concerns in which they are interested.
The Pali District Central Co-operative Bank Ltd, Rajasthan
The Reserve Bank of India (RBI) fined the Pali District Central Co-operative Bank Ltd Rs 50,000 on March 17, 2026, for non-compliance with some KYC (Know Your Customer) rules.