Surat Mercantile Co-operative Bank and Urban Co-operative Bank, Cuttack have been fined by regulator, Reserve Bank of India for violating banking norms.

A fine upto Rs 5 lakh has been imposed on both banks.

"The RBI has imposed a monetary penalty of Rs 5 lakh on The Surat Mercantile Co-operative Bank Ltd...for violation of RBI instructions on disposal of non-banking assets, donations and purchasing of cheques...," a statement issued by the central bank read.

Urban Co-operative bank has been penalised with Rs 1 lakh for not abiding to instructions laid down by RBI for opening of collection counters without RBI nod.

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