New Delhi: The Reserve Bank of India (RBI) has levied penalties totaling Rs 60.3 lakh on five cooperative banks.

Among the banks facing penalties, Rajkot Nagarik Sahakari Bank shoulders the heaviest burden, being subjected to a penalty of Rs 43.30 lakh.

The penalty is attributed to the bank's non-compliance with RBI directives about various aspects, including the prohibition of loans and advances to directors and their relatives, restrictions on opening specific types of savings bank accounts, and maintenance protocols for deposit accounts.

Furthermore, three other cooperative banks – The Kangra Co-operative Bank (New Delhi), Rajdhani Nagar Sahkari Bank (Lucknow), and Zila Sahakari Bank, Garhwal (Kotdwar, Uttarakhand) – have been penalized with Rs 5 lakh each. Additionally, the District Co-operative Bank (Dehradun) faces a penalty of Rs 2 lakh.

The RBI's imposition of these penalties is not intended to pass judgment on the validity of any transactions or agreements entered into by the banks with their respective customers. 

Instead, they signify the central bank's commitment to maintaining the integrity of the banking system by enforcing compliance with regulatory standards.

In line with its regulatory mandate, the RBI has shown vigilance in monitoring the activities of financial institutions and takes appropriate measures to address instances of non-compliance. Through such actions, the RBI seeks to foster a banking environment characterized by transparency, accountability, and adherence to established norms.

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