**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3 lakh on The Ranuj Nagrik Sahakari Bank Ltd., Dist. Patan, Gujarat, effective September 30, 2025. This penalty is for non-compliance with certain RBI directions regarding 'Management of Advances - UCBs' and 'Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorized Electronic Banking Transactions'. The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
**Key Points / Main Content**
* **Penalty Imposition:**
* A monetary penalty of ₹3 lakh has been imposed on The Ranuj Nagrik Sahakari Bank Ltd.
* The penalty is for non-compliance with specific RBI directions.
* The order is dated September 30, 2025.
* **Grounds for Penalty:**
* The bank failed to ensure end-use of funds with respect to certain loan sanctioned by it.
* The bank failed to enable customers to instantly respond by "Reply" to SMS alerts regarding unauthorized electronic banking transactions.
* **RBI Statutory Inspection:**
* The RBI conducted a statutory inspection of the bank with reference to its financial position as on March 31, 2024.
* The penalty follows a notice to the bank and consideration of its reply and submissions.
* **Regulatory Basis:**
* The action is based on deficiencies in regulatory compliance.
* The penalty does not prejudice any other action RBI may initiate against the bank.
**Impact Analysis**
**The Ranuj Nagrik Sahakari Bank Ltd.**
* **Impact**
* The bank is subject to a monetary penalty of ₹3 lakh.
* The bank's regulatory compliance is deemed deficient.
* **Action Required**
* The bank must pay the imposed penalty.
* The bank should rectify the identified deficiencies in regulatory compliance to prevent future penalties.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
The Ranuj Nagrik Sahakari Bank Ltd., Dist. Patan, Gujarat: The cooperative bank penalized by the RBI.
Banking Regulation Act, 1949: The primary legislation under which the penalty was imposed.
Section 47A(1)(c): The specific section of the Banking Regulation Act used to impose the penalty.
'Management of Advances - UCBs' and 'Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorized Electronic Banking Transactions': RBI directions for non-compliance that led to the penalty.
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
October 03, 2025
RBI imposes monetary penalty on The Ranuj Nagrik Sahakari Bank Ltd., Dist.
Patan, Gujarat
The Reserve Bank of India (RBl) has, by an order dated September 30, 2025,
imposed a monetary penalty of ₹3 lakh (Rupees Three Lakh only) on The Ranuj Nagrik
Sahakari Bank Limited, Dist. Patan, Gujarat (the bank) for non-compliance with the
certain directions issued by RBI on ‘Management of Advances - UCBs’ and ‘Customer
Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorized
Electronic Banking Transactions’. 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 the 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, oral submissions made during the personal hearing and
additional submissions made by it, RBI found, inter alia, that the following charges
against the bank were sustained, warranting imposition of monetary penalty:
The bank had failed to:
i) ensure end-use of funds with respect to certain loan sanctioned by it; and
ii) enable its customers to instantly respond by "Reply" to the SMS alerts to
notify the objection towards unauthorised electronic banking transactions,
if any.
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.
(Brij Raj)
Press Release: 2025-2026/1244 Chief General Manager