RBI imposes monetary penalty on Gomti Nagariya Sahakari Bank Ltd., Jaunpur, Uttar Pradesh

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2 lakh on Gomti Nagariya Sahakari Bank Ltd., Jaunpur, Uttar Pradesh by order dated July 30, 2025. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2024, and related supervisory findings that the bank had not complied with specific directions issued under the Supervisory Action Framework (SAF). RBI said the sustained charges included sanctioning fresh loans and advances carrying risk weights of more than 100% and offering higher interest rates on term deposits than those offered by State Bank of India. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after notice, the bank’s reply, and oral submissions in personal hearing. RBI also clarified that the penalty is without prejudice to any other action it may initiate.