The Reserve Bank of India (RBI), in an order dated September 30, 2025, has imposed a monetary penalty of Rs 3 lakh on The Ranuj Nagrik Sahakari Bank Ltd., Patan, Gujarat for non-compliance with RBI directions on ‘Management of Advances – UCBs’ and ‘Customer Protection – Limiting Liability of Customers 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.

The RBI’s statutory inspection, referencing the bank’s financial position as of March 31, 2024, revealed lapses, and a show-cause notice was issued. After considering the bank’s reply, oral submissions, and additional documentation, RBI found the following violations:

Failure to ensure end-use of funds for certain loans sanctioned by the bank.

Failure to enable customers to respond instantly via SMS alerts regarding unauthorized electronic banking transactions.

RBI clarified that this penalty pertains solely to regulatory compliance deficiencies and does not affect the validity of any transactions or agreements. The action is without prejudice to any further measures RBI may take against the bank.