On September 25, 2025, the Reserve Bank of India (RBI) announced a monetary penalty of ₹10 lakh on Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana, for non-compliance with RBI directions on 'Marketing / Distribution of Mutual Fund / Insurance Products by Urban Cooperative Banks'. This penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
A statutory inspection of the bank as of March 31, 2024, revealed non-compliance with RBI directions. The bank was issued a notice to show cause regarding the penalty. The RBI found the bank had sold insurance products to its customers without adequate disclosure and transparency.
This action is based on deficiencies in regulatory compliance and does not intend to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The imposition of the penalty is without prejudice to any other action that may be initiated by RBI against the bank.
The press release number is 2025-2026/1167.
Contact Information:
Website: www.rbi.org.in
Email: helpdoc@rbi.org.in
Phone: 022 - 2266 0502
Puneet Pancholy, Chief General Manager.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed a monetary penalty on a cooperative bank.
Banking Regulation Act, 1949: The penalty was imposed under the provisions of this act.
Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana: The bank on which the monetary penalty was imposed.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
September 25, 2025
RBI imposes monetary penalty on Gayatri Co-operative Urban Bank Ltd.,
Jagtial, Telangana
The Reserve Bank of India (RBI) has, by an order dated September 23, 2025,
imposed a monetary penalty of ₹10 lakh (Rupees Ten Lakh only) on Gayatri Co-
operative Urban Bank Ltd., Jagtial, Telangana (the bank) for non-compliance with
certain directions issued by RBI on ‘Marketing / Distribution of Mutual Fund /
Insurance Products by Urban Cooperative Banks’. This penalty has been imposed in
exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read
with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its
financial position as on March 31, 2024. Based on supervisory findings of non-
compliance with RBI directions and related correspondence in that regard, a notice
was issued to the bank advising it to show cause as to why penalty should not be
imposed on it for its failure to comply with the said directions. After considering the
bank’s reply to the notice and oral submissions made during the personal hearing,
RBI found, inter alia, that the following charge against the bank was sustained,
warranting imposition of monetary penalty:
The bank had sold insurance products to its customers without adequate
disclosure and transparency.
This action is based on deficiencies in regulatory compliance and is not intended
to pronounce upon the validity of any transaction or agreement entered into by the
bank with its customers. Further, imposition of this monetary penalty is without
prejudice to any other action that may be initiated by RBI against the bank.
(Puneet Pancholy)
Press Release: 2025-2026/1167 Chief General Manager