Regulatory and Policy Measures
The Reserve Bank of India, 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 penalty is for non‑compliance with RBI directions on “Inspection & Audit Systems in Primary (Urban) Co‑operative Banks”.
The statutory inspection of the bank was conducted with reference to its financial position as on March 31, 2025. The RBI’s supervisory findings identified that the bank failed to conduct an internal audit for the period from April 1, 2023 to March 31, 2025. Consequently, a show‑cause notice was issued to the bank, asking it to explain why the penalty should not be imposed. After reviewing the bank’s written reply and oral submissions made during a personal hearing, the RBI sustained the charge and imposed the monetary penalty.
The penalty is imposed under the powers conferred on the RBI by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The RBI clarified that this action is based solely 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. The imposition of the penalty is also without prejudice to any other action that may be initiated by the RBI against the bank.
The press release is signed by the Chief General Manager, Brij Raj.