Banking regulator, Reserve Bank of India has fined yet another cooperative bank, this time in Maharashtra. Dwarakadas Mantri Nagari Sahakari Bank has been penalized on grounds of violation of RBI guidelines in loan disbursal mechanism.

"The RBI has imposed a monetary penalty of Rs 5 lakh on Dwarakadas Mantri Nagari Sahakari Bank Ltd, Beed... for violating RBI directives/instructions relating to loans/ Advances to directors/their relatives/concerns in which they are interested," the apex bank said.

A show cause notice had been issued to the bank in reply to which it had given a written reply.

"After considering the facts of the case, bank's reply and personal submissions in the matter, the RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty," it said.