The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh on Shree Laxmi Co-operative Bank Ltd., Pune, for non-compliance with various regulatory directions related to Know Your Customer (KYC) norms, maintenance of deposit accounts, and handling of inoperative accounts and unclaimed deposits.
The penalty was imposed through an order dated May 22, 2026, under the provisions of the Banking Regulation Act, 1949, following supervisory observations made during the bank’s statutory inspection with reference to its financial position as of March 31, 2025.
According to the RBI, the bank failed to conduct periodic reviews of customer risk categorisation at the prescribed frequency and did not upload customer KYC records to the Central Know Your Customer Registry (CKYCR) within the stipulated timelines.
The central bank also observed that the bank levied penal charges for non-maintenance of minimum balance without properly informing customers and failed to conduct annual reviews of accounts that had remained inactive for over a year without customer-induced transactions.
RBI clarified that the action is based solely on deficiencies in regulatory compliance and does not affect the validity of transactions or agreements entered into by the bank with its customers.