RBI imposed Monetary Penalty on 4 Co-operative Banks
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The Reserve Bank of India (RBI) has imposed monetary penalty in 4 Co-operative Banks in India – The Uma Co-operative Bank Ltd., Vadodara, Gujarat, Sarvodaya Commercial Cooperative Bank Ltd., Dist. Mehsana, Gujarat, Sardargunj Mercantile Co-operative Bank Limited, Patan, Gujarat, Shree Bharat Co-operative Bank Ltd., Vadodara, Gujarat.
RBI imposes monetary penalty on The Uma Co-operative Bank Ltd., Vadodara, Gujarat
The Reserve Bank of India (RBl) has, by an order dated August 08, 2025, imposed a monetary penalty of ₹1 lakh (Rupees One lakh only) on The Uma Co-operative Bank Ltd., Vadodara, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Inspection & Audit Systems in Primary (Urban) Co-operative Banks’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The penalty has been imposed as the bank had failed to conduct Internal Audit during April 01, 2022 to March 31, 2024.
RBI imposes monetary penalty on Sarvodaya Commercial Cooperative Bank Ltd., Dist. Mehsana, Gujarat
The Reserve Bank of India (RBl) has, by an order dated August 08, 2025, imposed a monetary penalty of ₹5 lakh (Rupees Five Lakh only) on Sarvodaya Commercial Cooperative Bank Ltd., Dist. Mehsana, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Donations / Contributions for public / charitable purposes out of profits of UCBs’, ‘Financial Statements – Presentation and Disclosures’, ‘Inspection & Audit Systems in Primary (Urban) Co- operative Banks’, ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’, and ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The penalty has been imposed as the bank had:
- made donations to trusts in excess of prescribed regulatory ceiling;
- failed to present the true and fair picture of its profits and assets in profit and loss statement and balance sheet respectively;
- conducted concurrent audit monthly instead of conducting simultaneous check of the transactions and reports were submitted with delays;
- failed to categorise certain Non-Performing Assets (NPAs) in the appropriate NPA sub-category; and
- failed to carry out periodic review of risk categorisation of accounts with such periodicity being at least once in six months.
RBI imposes monetary penalty on Sardargunj Mercantile Co-operative Bank Limited, Patan, Gujarat
The Reserve Bank of India (RBl) has, by an order dated August 08, 2025, imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Sardargunj Mercantile Co-operative Bank Limited, Patan, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Co-operative Banks – Interest Rate on Deposits’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The penalty has been imposed as the bank had accepted certain interest-free deposits in accounts other than current account.
RBI imposes monetary penalty on Shree Bharat Co-operative Bank Ltd., Vadodara, Gujarat
The Reserve Bank of India (RBl) has, by an order dated August 08, 2025, imposed a monetary penalty of ₹2.50 lakh (Rupees Two Lakh Fifty Thousand only) on Shree Bharat Co-operative Bank Ltd., Vadodara, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Inspection & Audit Systems in Primary (Urban) Co- operative Banks’, ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’, and ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The penalty has been imposed as the bank had:
i. put in place a system of Internal Audit;
ii. put in place a system to identify Non-Performing Assets (NPAs) on an ongoing basis
and classify certain loans and advances as NPAs; and
iii. carry out periodic review of risk categorisation of certain accounts, with such
periodicity being at least once in six months.
