Penalties

The RBI has imposed penalties on several district central co-operative banks, including Nanded and Vijayapura, for lapses in PSL norms, capital adequacy, and governance. The 28 August 2025 orders highlight the regulator’s enforcement-driven approach and judicial deference to RBI discretion. For banking lawyers, the move signals stricter compliance expectations and reputational risks for clients in the co-operative sector.

Non-compliance with India’s DPDPA can cost businesses heavily. Learn the risks, penalties, and how to stay compliant.