The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on Shri Baria Nagarik Sahakari Bank Ltd., Baria, Gujarat, for non-compliance with regulatory guidelines related to inspection and audit systems in primary urban co-operative banks.

The penalty, imposed through an order dated July 17, 2026, follows RBI's statutory inspection of the bank based on its financial position as of March 31, 2025.

The central bank found that the bank failed to conduct internal audits for the period from April 1, 2023, to March 31, 2025, in violation of RBI's prescribed norms. After reviewing the inspection findings, the bank's reply, and oral submissions made during the personal hearing, the RBI concluded that the violation warranted a monetary penalty.

RBI clarified that the action is based solely on deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements entered into by the bank with its customers. It also stated that the penalty is without prejudice to any further regulatory action that may be initiated against the bank.