Sarvodaya Commercial Cooperative Bank Ltd., Dist. Mehsana, Gujarat

RBI imposed a monetary penalty after a statutory inspection (with reference to the bank's financial position as on March 31, 2024) and supervisory findings showed non-compliance with multiple RBI directions. The sustained charges included donations to trusts beyond the prescribed ceiling, failure to present a true and fair picture of profits and assets in the P&L statement and balance sheet, conducting concurrent audit monthly instead of performing simultaneous checks, delays in audit report submission, failure to classify certain NPAs into the appropriate sub-category, and failure to periodically review risk categorisation of accounts at least once every six months. Penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the penalty and address the control and compliance gaps identified by RBI. The action does not by itself impose a business restriction, but it signals continued supervisory scrutiny and may be followed by further regulatory action if deficiencies persist. Depositors and other stakeholders are indirectly affected through the bank's need to strengthen governance, audit, NPA classification, and KYC-related controls.