RBI imposes monetary penalty on Surat People's Co-operative Bank Ltd., Surat
Issuing Authority: Reserve Bank of India
Reference: Press Release 2026-2027/654
Date: 13 July 2026
Banking and Credit
The RBI conducted a statutory inspection of Surat People's Co-operative Bank Ltd. with reference to its financial position as on 31 March 2025. The inspection identified non‑compliance with RBI directions on the composition and conduct of the Board of Directors of urban cooperative banks. Specifically, certain directors participated in board meetings where proposals in which they had direct or indirect interests were discussed and approved.
Regulatory and Policy Measures
Pursuant to Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, the RBI imposed a monetary penalty of ₹13.30 lakh on the bank. The penalty follows a notice and show‑cause process, during which the bank’s reply and oral submissions were considered. RBI clarified that the penalty is imposed solely for regulatory compliance deficiencies and does not affect the validity of any customer transactions. The action is without prejudice to any further regulatory measures that may be taken against the bank.
The RBI’s action underscores strict enforcement of board‑governance norms for urban cooperative banks and signals continued supervisory vigilance.