Monetary Penalty on Shri Baria Nagarik Sahakari Bank Ltd.
RBI press-release 2026-2027/742 · 23 Jul 2026
Official title
RBI imposes monetary penalty on Shri Baria Nagarik Sahakari Bank Ltd., Baria, Gujarat
RBI press-release 2026-2027/742 · 23 Jul 2026
Official title
RBI imposes monetary penalty on Shri Baria Nagarik Sahakari Bank Ltd., Baria, Gujarat
Summary
Check the official recordThe Reserve Bank of India has imposed a monetary penalty of ₹1 lakh on Shri Baria Nagarik Sahakari Bank Ltd., Baria, Gujarat. The penalty was issued following a statutory inspection of the bank's financial position as of March 31, 2025, which revealed that the bank failed to conduct an internal audit between April 1, 2023, and March 31, 2025. This failure constituted non-compliance with RBI directions regarding 'Inspection & Audit Systems in Primary (Urban) Co-operative Banks'. The bank was issued a show-cause notice and provided an opportunity for a personal hearing before the final order was issued on July 17, 2026. The action is based on regulatory deficiencies and does not affect the validity of the bank's transactions with its customers.
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July 23, 2026 RBI imposes monetary penalty on Shri Baria Nagarik Sahakari Bank Ltd., Baria, Gujarat
The Reserve Bank of India (RBl) has, by an order dated July 17, 2026, imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Shri Baria Nagarik Sahakari Bank Ltd., Baria, 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 statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank had failed to conduct Internal Audit during April 1, 2023, to March 31, 2025.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2026-2027/742 Chief General Manager
प्रेस प्रकाशनी PRESS RELEASE
भारतीय रिज़र्व बैंक
RESERVE BANK OF INDIA
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