Ahmedabad: The Reserve Bank of India (RBI), by an order dated September 17, 2025, has imposed a monetary penalty of ₹23,000 on The Ahmedabad Mercantile Co-operative Bank Limited for non-compliance with certain RBI directions on “Membership of Credit Information Companies by Co-operative Banks.”

The statutory inspection of the bank was conducted by 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, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed for its failure to comply with the said directions.

After considering the bank’s reply to the notice, additional submissions, and oral arguments made during the personal hearing, RBI found, inter alia, that the following charge was sustained, warranting the imposition of a monetary penalty:

The bank did not submit certain credit information of its borrowers to Credit Information Companies (CICs) as on March 31, 2024.

RBI clarified that the action is based 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. Further, the imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank. DeshGujarat