The Reserve Bank of India (RBI) has imposed penalties on five cooperative banks for failing to meet regulatory requirements. The penalized banks include The Manmandir Co-operative Bank Ltd, The Lakhvad Nagarik Sahakari Bank Ltd, Contai Co-operative Bank Limited, Sarvodaya Co-operative Bank Ltd, and Sanmitra Sahakari Bank Ltd.
The penalties range from ₹1.00 lakh to ₹3.00 lakh, addressing issues like non-compliance with KYC guidelines, imprudent loans, and breaching exposure limits.
RBI clarified that the penalties are for regulatory lapses and don't question the validity of transactions with customers.