RBI Action: RBI imposed heavy fine on these 4 banks, do you have an account in them?

RBI has imposed penalty on four banks. This decision has been taken due to ignorance of rules. There is an allegation of non-compliance with KYC and loan related guidelines. Let us know whether this action will also affect the customers?

RBI Action: In July, a big action by the Reserve Bank of India (RBI) has come to the fore again. A fine of lakhs has been imposed on four government banks located in Gujarat and Maharashtra. Some banks included in this list have violated the rules related to loans. At the same time, some were not able to comply with the guidelines related to UPI / KYC / UCB. RBI has issued a notification related to the action on 17 July.

In March 2025, The Mandvi Nagarik Sahakari Bank Limited (Surat, Gujarat), Suryoday Nagarik Sahakari Bank Limited (Himatnagar, Gujarat) and The Laxmi Vishnu Sahakari Bank Limited (Maharashtra) were inspected by RBI. Thane District Central Co-operative Bank Limited (Maharashtra) was inspected by NABARD. The purpose of this inspection was to check the financial condition of the bank. During this, the negligence in the rules was revealed.

Mandvi Nagrik Sahakari Bank Ltd

Surat-based Mandvi Nagrik Sahakari Bank Ltd has been fined Rs 2 lakh by the RBI after allegations were confirmed that it failed to ensure end-use of funds in respect of loans.

Suryodaya Nagarik Sahakari Bank Ltd

Suryodaya Nagarik Sahakari Bank Ltd failed to conduct vulnerability assessment and penetration testing of its internet related mobile application within the stipulated time limit. Apart from this, compensation was provided for some successful IMPS and UPI transactions which were not automatically reversed within the stipulated time limit. It has been fined Rs 3 lakh.

Thane District Central Co-operative Bank Ltd

This bank failed to establish a system for periodic updating of KYC of its customers within the stipulated time limit. Therefore, RBI has imposed a fine of Rs 2.10 lakh on it.

The Lakshmi Vishnu Sahakari Bank Limited

Loans related to directors were sanctioned in this bank. Therefore, a fine of Rs 20,000 has been imposed. After the disclosure of ignorance in the rules, RBI had issued a show cause notice to all the banks. After which an investigation was conducted. The decision to impose a penalty was taken on the basis of the bank’s reply, oral presentation and necessary documents.

Customers need not worry

For information, let us tell you that this action will not affect any customer. Customers will be able to transact as before. The agreement will also not be affected. RBI itself has confirmed this.

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