The Reserve Bank of India (RBI) has fined four co-operative banks for rule violations. 

The names of the banks are Sarvodaya Sahakari Bank, Dhanera Mercantile Co-operative Bank, Janata Co-operative Bank and Maninagar Co-operative Bank.

The central bank slapped a Rs 1 lakh penalty on Maninagar Co-operative Bank, a Rs 3.50 lakh penalty on Janata Co-operative Bank, a Rs 6.50 lakh penalty on Dhanera Mercantile Co-operative Bank and a Rs 6 lakh penalty on Sarvodaya Sahakari Bank.

The central bank imposed a penalty of Rs 6 lakh on Sarvodaya Sahakari Bank, Modasa, Gujarat because the bank had sanctioned credit facilities to a relative of one of its directors, and also where relatives of the directors stood as guarantors, breaching the inter-bank gross exposure limit, RBI said in a release.

The bank had also breached the inter-bank counterparty exposure limit and failed to pay interest on matured fixed deposits from the date of maturity until the date of repayment at the rate applicable to savings deposits or the contracted rate of interest, whichever is lower, according to the release.

Similarly, Dhanera Mercantile Co-operative Bank was penalised for sanctioning credit facilities to its directors and their relatives. Additionally, their relatives stood as guarantors, breaching the prudential inter-bank (gross) exposure limit and prudential inter-bank counterparty exposure limit.