RBI imposes monetary penalty on Shree Chhani Nagarik Sahakari Bank Limited, Vadodara, Gujarat

Case Brief

By order dated June 30, 2025, RBI imposed a monetary penalty of ₹4.00 lakh on Shree Chhani Nagarik Sahakari Bank Limited, Vadodara, Gujarat. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after RBI's statutory inspection found non-compliance with directions relating to KYC, customer protection for unauthorized electronic banking transactions, and cyber security requirements for primary (urban) cooperative banks. RBI said the bank failed to review risk categorisation of certain accounts at least once in six months, failed to provide 24x7 channels to report unauthorized electronic banking transactions, and failed to implement certain prescribed cyber security controls.