The Reserve Bank of India (RBI) has imposed monetary penalties on four cooperative banks in Gujarat for non-compliance with various regulatory directions last week.
By an order dated August 8, 2025, the RBI levied a penalty of Rs 1 lakh on The Uma Co-operative Bank Ltd., Vadodara for deficiencies in compliance with its instructions on Inspection & Audit Systems in Primary (Urban) Cooperative Banks.
In another case, Sarvodaya Commercial Cooperative Bank Ltd., Mehsana district was fined Rs 5 lakh for violations relating to donations/contributions from profits, financial statement disclosures, inspection and audit systems, income recognition and asset classification (IRAC) norms, and Know Your Customer (KYC) guidelines.
Similarly, Sardargunj Mercantile Cooperative Bank Ltd., Patan faced a penalty of Rs 1 lakh for non-compliance with directions on interest rates on deposits.
Meanwhile, Shree Bharat Cooperative Bank Ltd., Vadodara was penalised Rs 2.5 lakh for failing to adhere to norms relating to inspection and audit systems, income recognition and asset classification (IRAC), and KYC requirements.
The RBI clarified that these monetary penalties are based on lapses in regulatory compliance and do not question the validity of any banking transactions or customer relationships handled by the concerned banks.
