RBI Imposes Rs20.80 Lakh Penalty on Surat Cooperative Bank and 3 Banks in Madhya Pradesh
Moneylife Digital Team 02 September 2025
Reserve Bank of India (RBI) has imposed a penalty of Rs20.80 lakh on four cooperative banks for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs18.30 lakh has been levied on Surat People’s Cooperative Bank Ltd. Additionally, a total penalty of Rs2.50 lakh has been imposed on three branches of Jilla Sahakari Kendriya Bank Maryadit from Madhya Pradesh (MP).
 
Surat People’s Cooperative Bank was penalised for failing to comply with RBI’s directions on reporting large exposures to the Central Repository of Information on Large Credits (CRILC) for Urban Cooperative Banks (UCBs).
 
RBI's statutory inspection revealed that Surat People’s Cooperative Bank did not report credit information pertaining to certain borrowers to CRILC within the prescribed time.
 
In addition, three branches of Jilla Sahakari Kendriya Bank Maryadit in MP have been fined a total of Rs2.50 lakh. The Ujjain and Narmadapuram branches were penalised Rs1 lakh each, while the Damoh branch was fined Rs50,000.
 
All three branches of Jilla Sahakari Kendriya Bank Maryadit had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund (DEA Fund) within the prescribed time.
 
The central bank says, "After considering the reply and oral submissions of all four banks during the personal hearing, RBI concluded that the charges of non-compliance with RBI directions were substantiated and warranted imposition of a monetary penalty."
 
In all four cases, RBI says the penalties are based on deficiencies in regulatory compliance and are not intended to be pronounced upon the validity of any transaction or agreement they entered with their customers.
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