The Prime Co-operative Bank Ltd., Surat, Gujarat

RBI imposed a monetary penalty after supervisory inspection found the bank had not complied with RBI directions on customer protection for unauthorized electronic banking transactions and the Basic/Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks. The sustained charges included failure to provide reporting facilities through SMS, email and toll-free number, failure to enable instant response options to SMS/e-mail alerts during FY 2022-23, and failure to implement certain cyber security control measures. The 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 monetary penalty and remains subject to RBI supervision; the order does not itself restrict operations, but it highlights compliance gaps in customer protection and cyber security that RBI may act on further if not corrected. Customers were the affected group in terms of reporting and alert-response facilities.