Top News

The Reserve Bank of India (RBI) has shown strictness against another cooperative bank in June. A fine of Rs 5 lakh has been imposed on Mahila Co-operative Bank Limited, located in Bengaluru, Karnataka. This step has been taken under various provisions of the Banking Regulation Act 1949. Information about this action was given by RBI on its official website on June 15. But it is given. The order regarding the fine was issued by Bank No. 11 on June 11.

To check the financial position of the bank, RBI had conducted a statutory inspection till March 31, 2025. During this period, deficiencies in compliance with the guidelines were revealed. On the basis of the investigation report, a notice was issued to the bank and clarification was sought. The feedback received on this and the presentations made during the personal hearing were considered. It was decided to impose fine if the allegations were proved true.

The bank broke these rules

This bank has sanctioned loans to directors, which is against banking rules. Under the rules, bank directors cannot give loans or advances to their relatives, forms/companies. Such loans also cannot be approved where the directors act as guarantors, partners or managers.

Will customers be affected?

This action of RBI will not affect any transactions taking place between customers and banks. Customers will be able to avail all the services like before. This has been confirmed by the Central Bank itself. The Reserve Bank of India said, “This action is based on regulatory lapses. It is not intended to affect the validity of any transaction or agreement between the bank and the customer.” It will not have any impact on any other action taken in future.

So far in June, RBI has taken strict action against many banks for violating rules. This includes Central Cooperative Bank Limited Haryana, Amravati Merchants Cooperative Bank Limited (Maharashtra), Canara Bank and Nagar Cooperative Bank Limited, Maharajganj (UP).

See RBI notification here