The Reserve Bank of India (RBI) imposed monetary penalties on Sarvodaya Commercial Co-operative Bank Ltd., Mehsana, Gujarat; Navapur Mercantile Co-operative Bank Ltd., Nandurbar, Maharashtra; and The Chitradurga District Co-operative Central Bank Ltd., Chitradurga, Karnataka, on June 18, 2026. These penalties were levied for non-compliance with certain regulatory provisions, as detailed in official RBI press releases.
The RBI's action followed supervisory reviews that identified lapses in adherence to banking regulations by these institutions. The penalties were imposed under Section 47A(1)(c) of the Banking Regulation Act, 1949, which empowers the RBI to take such measures against banks violating regulatory norms. The RBI's press releases specify that the penalties are monetary and serve as a deterrent to ensure compliance with banking laws.
Monetary penalties on co-operative banks underscore the RBI's ongoing efforts to strengthen governance and regulatory compliance in the cooperative banking sector. Such enforcement actions aim to protect depositors' interests and maintain financial stability. These penalties align with previous RBI measures targeting irregularities in cooperative banks, reflecting a broader regulatory focus on improving transparency and operational discipline in this segment.
The RBI's press releases dated June 18, 2026, provide the official details of the penalties imposed on the three banks. These actions form part of the RBI's supervisory framework to uphold banking standards and safeguard the financial system.