RBI imposes monetary penalty on Sarvodaya Commercial Cooperative Bank Ltd., Dist. Mehsana, Gujarat

Case Brief

By an order dated August 08, 2025, RBI imposed a monetary penalty of ₹5 lakh on Sarvodaya Commercial Cooperative Bank Ltd., Dist. Mehsana, Gujarat. The action followed a statutory inspection of the bank with reference to its financial position as on March 31, 2024, and subsequent supervisory findings of non-compliance with several RBI directions. RBI held that the bank had exceeded the prescribed ceiling for donations to trusts, not presented a true and fair picture of profits and assets in its financial statements, conducted concurrent audit monthly rather than through simultaneous checks, delayed submission of reports, misclassified certain NPAs, and failed to review risk categorisation of accounts at least once in six months. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.