RBI imposes monetary penalty on Shree Laxmi Co-operative Bank Ltd., Pune

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2 lakh on Shree Laxmi Co-operative Bank Ltd., Pune by order dated May 22, 2026. The penalty was imposed after a statutory inspection found non-compliance with RBI directions relating to KYC, maintenance of deposit accounts for primary (urban) co-operative banks, and instructions on inoperative accounts and unclaimed deposits. RBI sustained charges that the bank failed to periodically review account risk categorisation, did not upload KYC records to CKYCR within the prescribed timeline, levied penal charges for non-maintenance of minimum balance without informing customers, and did not conduct annual reviews of inactive accounts. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.