RBI imposes monetary penalty on Sri Bharathi Co-operative Urban Bank Limited, Hyderabad

Case Brief

RBI, by order dated June 25, 2026, imposed a monetary penalty of Rs 1.50 lakh on Sri Bharathi Co-operative Urban Bank Limited, Hyderabad. The action followed a statutory inspection and subsequent supervisory proceedings that found non-compliance with RBI directions on loans and advances to directors/related parties and on small value loans for primary urban co-operative banks. RBI concluded that the bank had sanctioned director-related loans and had failed to ensure that small value loans made up at least 40% of aggregate loans and advances as on March 31, 2025. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.