Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
23 Jul 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Shri Baria Nagarik Sahakari Bank Ltd., Baria, Gujarat, following a statutory inspection and subsequent show-cause proceedings. RBI found that the bank had failed to conduct internal audit during April 1, 2023 to March 31, 2025, amounting to non-compliance with its directions on Inspection & Audit Systems in Primary (Urban) Co-operative Banks, and acted under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
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 a statutory inspection and a show-cause process. RBI found the charge sustained that the bank had not conducted Internal Audit during April 1, 2023 to March 31, 2025, which amounted to non-compliance with RBI directions on 'Inspection & Audit Systems in Primary (Urban) Co-operative Banks'.
Operating Impact
The bank must absorb the monetary penalty and ensure compliance with RBI’s inspection and audit requirements going forward. The action does not itself impose a business restriction, but it signals supervisory concern and may be followed by further RBI action if deficiencies persist.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 17 Jul 2026
- Effective From
- 17 Jul 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank