The Reserve Bank of India (RBI) has imposed a sentence of more than RS 12 lakh at eight cooperative banks in Madhya Pradesh, Maharashtra, West Bengal, Manipur, Gujarat, Haryana and Uttar Pradesh.

The highest sentence by RBI worth RS 4 Lakh has been worn at the Nabapalli Cooperative Bank, Barasat, West Bengal, because it does not hold on to the exposure to the exposure between the Prudential Bank (gross) and fails to comply with the prudential inter-bank partner limits.

Faiz Mercantile Co-operative Bank, Nasik, Maharashtra has received a penalty of at least 25,000 Rs to provide loans to relatives of directors by violating the norm.

Other banks that have been punished include Jila Sahakari Kendriya Bank Maryadit in Madhya Pradesh, Amravati Merchants Cooperative Bank in Maharashtra, Manipur Cooperative Bank in Manipur, Indian Cooperative Bank in Uttar Pradesh, Urban Cooperative Bank in Baghat Haryana, and Navnirman Co-operative Bank in Gujarat. Most of the number of RS 1 Lakh penalty has been charged at these banks.

Some violations by these banks include not transferring uncontressive deposits that meet the requirements to deposit education funds and consciousness, postponing reporting fraud, and giving unsecured loan sanctions.