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Sarvodaya Nagrik Sahakari Bank Ltd., Himatnagar, Dist. Sabarkantha, Gujarat

Co-operative bankHimatnagar, Gujarat

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 3.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

17 Jul 2025

Case Brief

The RBI, by order dated July 11, 2025, imposed a monetary penalty of ₹3 lakh on Sarvodaya Nagrik Sahakari Bank Ltd., Himatnagar, Dist. Sabarkantha, Gujarat. The action followed a statutory inspection of the bank with reference to its financial position as on March 31, 2024, and subsequent supervisory findings of non-compliance with RBI directions. RBI sustained charges that the bank failed to conduct vulnerability assessment and penetration testing of its internet-facing mobile application as required, and failed to provide compensation for certain failed IMPS and UPI transactions that were not auto-reversed within the prescribed timeline. The penalty was levied under the Banking Regulation Act, 1949 and the Payment and Settlement Systems Act, 2007.

Why RBI Acted

Cyber securityCustomer protectionReporting & disclosure

RBI imposed a monetary penalty after a statutory inspection with reference to the bank's financial position as on March 31, 2024. The bank was found to have failed to conduct vulnerability assessment and penetration testing of its internet-facing mobile application as per the prescribed periodicity, and failed to provide compensation for certain failed IMPS and UPI transactions that were not auto-reversed within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007.

Operating Impact

The bank must pay the monetary penalty, but the release does not impose a new operating ban or restriction on business. The findings may support further supervisory or enforcement action by RBI, and the underlying compliance gaps remain relevant for the bank's cyber security controls and customer compensation processes.

Regulatory Basis

  • Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
  • Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007

Action Facts

Primary Impact
Fine: Rs 3.00 L
Order Date
11 Jul 2025
Effective From
11 Jul 2025
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank