Patan: The Reserve Bank of India (RBI) has, by an order dated September 30, 2025, imposed a monetary penalty of ₹3 lakh on The Ranuj Nagrik Sahakari Bank Limited, in Patan, for non-compliance with certain directions issued by RBI on ‘Management of Advances – UCBs’ and ‘Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorized Electronic Banking Transactions’.

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, 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, oral submissions made during the personal hearing, and additional submissions, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of the monetary penalty:

The bank had failed to:

• Ensure end-use of funds with respect to certain loans sanctioned by it; and

• Enable its customers to instantly respond by “Reply” to SMS alerts to notify objections toward unauthorized electronic banking transactions, if any.

This 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 this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.