RBI imposes monetary penalty on Surat People’s Co-operative Bank Ltd., Surat

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹13.30 lakh on Surat People’s Co-operative Bank Ltd., Surat by order dated July 10, 2026. RBI said the penalty followed a statutory inspection and supervisory findings of non-compliance with its directions on 'Board of Directors - UCBs'. The sustained charge was that certain directors participated in a Board meeting where proposals in which they were directly or indirectly interested were discussed and approved. RBI imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.