Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
3 Oct 2025
Case Brief
By an order dated September 30, 2025, RBI imposed a monetary penalty of ₹3 lakh on The Ranuj Nagrik Sahakari Bank Limited, Dist. Patan, Gujarat. The bank was found to have failed to comply with RBI directions on management of advances and on customer protection relating to unauthorized electronic banking transactions, including lapses in ensuring end-use of funds for certain loans and in enabling customers to instantly reply to SMS alerts to report objections to such transactions. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following supervisory inspection and show-cause proceedings.
Why RBI Acted
RBI imposed a monetary penalty after its supervisory inspection found that the bank had not complied with certain RBI directions on 'Management of Advances - UCBs' and 'Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorized Electronic Banking Transactions'. The sustained charges included failure to ensure end-use of funds for certain loans sanctioned by the bank and failure to enable customers to instantly reply to SMS alerts to object to unauthorized electronic banking transactions. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must bear the monetary penalty; the release does not impose a forward-looking business restriction, but RBI notes the action is without prejudice to any other action that may be initiated. Customers are not directly subject to a new restriction from this order.
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 3.00 L
- Order Date
- 30 Sept 2025
- Effective From
- 30 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank