Suryoday Small Finance Bank Ltd

RBI imposed a monetary penalty on Suryoday Small Finance Bank Ltd. under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949 for non-compliance with the RBI (Frauds classification and reporting by commercial banks and select FIs) Directions, 2016. On inspection with reference to the bank’s financial position as on March 31, 2019, RBI found that the bank did not furnish FMRs to RBI within the prescribed three weeks for certain fraud cases and did not refer certain frauds committed by its staff to State Police authorities. After considering the bank’s reply and oral submissions, RBI concluded the charge was substantiated and warranted penalty.

Suryoday Small Finance Bank must absorb the monetary penalty and ensure future compliance with RBI’s fraud classification and reporting requirements, including timely FMR filings and police referrals where required. The action does not itself restrict the bank’s operations, but it signals heightened regulatory scrutiny over fraud reporting and internal governance processes.