Case Brief
RBI, by order dated September 23, 2025, imposed a monetary penalty of ₹10 lakh on Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana. The penalty followed a statutory inspection with reference to the bank’s financial position as on March 31, 2024, and related supervisory proceedings. RBI found that the bank had sold insurance products to customers without adequate disclosure and transparency, in violation of RBI directions on marketing/distribution of mutual fund and insurance products by urban cooperative banks. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- Co-operative bank
- Location
- Jagtial, Telangana