RBICivil Money Penaltylow

Citizen Cooperative Bank Ltd

Karnataka, India

The Reserve Bank of India imposed a penalty of ₹50,000 on Karnataka-based Citizen Cooperative Bank Ltd on Jul 28, 2026. The fine followed an RBI inspection that found the bank had failed to classify certain loan accounts as non-performing assets. Citizen Cooperative Bank did not comply with RBI directions on income recognition, asset classification, provisioning, and related norms applicable to urban cooperative banks.

60 lakh levied against four cooperative banks for regulatory violations. The RBI stated the penalty is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into with customers.

Implications
  1. NPA classification failures remain a key enforcement focus for RBI across cooperative banks
  2. Underscores the importance of accurate asset quality reporting for smaller banks
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