RBI imposes monetary penalty of ₹4 lakh on cooperative bank in Vadodara

Vadodara: The Reserve Bank of India (RBI) has recently announced that, by an order dated June 30, 2025, it has imposed a monetary penalty of ₹4.00 lakh on Shree Chhani Nagarik Sahakari Bank Limited, Vadodara, Gujarat, for non-compliance with certain directions issued by the RBI on ‘Know Your Customer (KYC)’ and other regulatory requirements.

This penalty has been imposed in exercise of powers conferred on the RBI under the provisions of Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, according to a press release.

The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2024. 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, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had failed to:

1. 1. carry out periodic review of risk categorisation of certain accounts at least once in six months;
2. 2. provide customers with 24×7 access to report unauthorized electronic banking transactions through multiple channels; and
3. 3. implement certain cyber security controls prescribed by RBI under the Cyber Security Framework. DeshGujarat