In yet another case of penalizing co-operative banks, regulator Reserve Bank of India has put a fine on two more cooperative banks of Gujarat. The banks are the Mehsana Urban Co-operative Bank Ltd and the Jamnagar Peoples Co-operative Bank Ltd.

These banks have also been penalized on grounds of violating certain guidelines.

"The RBI... imposed a monetary penalty of Rs 5 lakh on the Mehsana Urban Co-operative Bank Ltd, Mehsana (Gujarat)," read a statement by the regulator.

The banks have violated rules directed for membership of co-operative societies, conduct of non-banking business and using the word 'Bank' in the name of another institution.

Show cause notices were issued to the two banks following which the lenders had submitted written replies.

Penalty was imposed after that. "... the RBI concluded that the violation was substantiated and warranted imposition of penalty," RBI said.