RBI imposes monetary penalty on Sarvodaya Commercial Co-operative Bank Ltd., Mehsana, Gujarat
Case Brief
By an order dated May 29, 2026, RBI imposed a monetary penalty of ₹20,000 on Sarvodaya Commercial Co-operative Bank Ltd., Mehsana, Gujarat. The penalty followed a statutory inspection and a show-cause process, and RBI concluded that the bank had failed to comply with directions on inoperative accounts / unclaimed deposits by levying penal charges for non-maintenance of minimum balances in certain inoperative accounts.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after finding that Sarvodaya Commercial Co-operative Bank Ltd., Mehsana, Gujarat had not complied with RBI directions on ‘Inoperative Accounts / Unclaimed Deposits in Banks - Revised Instructions’. The sustained charge was that the bank levied penal charges for non-maintenance of minimum balances in certain inoperative accounts. RBI stated that the action was based on supervisory findings of regulatory non-compliance and was without prejudice to any other action that may be initiated.
Severity Assessment
The action is a monetary penalty of only ₹20,000, which falls in the lowest monetary band and there is no broader operational restriction.
The bank must absorb the penalty and remain mindful of compliance with RBI’s instructions on inoperative accounts and unclaimed deposits. The order does not itself impose an operational restriction on customers, but it signals supervisory scrutiny and the possibility of further action if similar non-compliance continues.
Published as Sarvodaya Commercial Co-operative Bank Ltd., Mehsana, Gujarat
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