Document title: RBI imposes monetary penalty on Sri Bharathi Co-operative Urban Bank Limited, Hyderabad
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/562
Date: June 29, 2026
Regulatory and Policy Measures
The Reserve Bank of India, by an order dated June 25, 2026, imposed a monetary penalty of ₹1.50 lakh (Rupees One Lakh Fifty Thousand only) on Sri Bharathi Co-operative Urban Bank Limited, Hyderabad. The penalty is imposed under the powers conferred by 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 with reference to its financial position as on March 31, 2025. RBI’s supervisory findings indicated non‑compliance with two specific directions: (i) the bank had sanctioned loans to directors, their relatives, or firms/concerns in which they are interested; and (ii) the bank failed to ensure that small‑value loans constituted at least 40 percent of its aggregate loans and advances as on the said date.
Following the inspection, RBI issued a notice to the bank requiring it to show cause why the penalty should not be imposed. After considering the bank’s written reply, oral submissions made during a personal hearing, and additional submissions, RBI sustained the charges and imposed the monetary penalty. The action is taken solely on the basis of regulatory compliance deficiencies and does not comment on the validity of any underlying transactions with customers. The penalty is imposed without prejudice to any further action RBI may initiate against the bank.
This enforcement underscores RBI’s commitment to ensuring adherence to prudential norms concerning director‑related lending and the mandated composition of small‑value loans for urban co‑operative banks.