Reserve Bank of India (RBI) has imposed a penalty of Rs26 lakh on two cooperative banks for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs25 lakh has been imposed on Gujarat-based Mehsana Urban Cooperative Bank Ltd. Parner Taluka Sainik Sahakari Bank Ltd from Maharashtra has been penalised Rs1 lakh. Mehsana Urban Cooperative Bank has been penalised for non-compliance with directions issued by RBI on income recognition, asset classification, provisioning and other related matters in urban cooperative banks (UCBs). RBI statutory inspection found that the lender did not classify the credit facilities of certain borrowers as non-performing assets (NPAs). Similarly, during its inspection of Parner Taluka Sainik Sahakari Bank

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