Monetary Penalty on Surat People’s Co-operative Bank Ltd. · 2026-2027/654
RBI press-release 2026-2027/654 · 13 Jul 2026
Official title
RBI imposes monetary penalty on Surat People’s Co-operative Bank Ltd., Surat
RBI press-release 2026-2027/654 · 13 Jul 2026
Official title
RBI imposes monetary penalty on Surat People’s Co-operative Bank Ltd., Surat
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹13.30 lakh on Surat People’s Co-operative Bank Ltd. The bank failed to comply with RBI directions regarding the Board of Directors for Urban Co-operative Banks. Certain directors participated in board meetings where they held direct or indirect interests in the proposals under discussion. The RBI conducted a statutory inspection of the bank with reference to its financial position as on March 31, 2025. The bank received a show cause notice and provided a reply before the final order. This action addresses regulatory compliance deficiencies and does not affect the validity of any customer transactions or agreements.
Key dates
Who is affected
Thresholds
If you do not comply
July 13, 2026
RBI imposes monetary penalty on Surat People’s Co-operative Bank Ltd., Surat
The Reserve Bank of India (RBI) has, by an order dated July 10, 2026, imposed a monetary penalty of ₹13.30 lakh (Rupees Thirteen lakh and thirty thousand only) on Surat People’s Co-operative Bank Ltd., Surat (the bank), for non-compliance with certain directions issued by RBI on ‘Board of Directors - UCBs’. 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 that the following charge against the bank was sustained, warranting imposition of monetary penalty:
Certain directors of the bank had participated in the Board meeting, wherein proposals in which, they were directly or indirectly interested were discussed and approved.
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: 2026-2027/654 Chief General Manager
ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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