India, July 14 -- The Reserve Bank of India (RBI) has imposed a Rs 13.30 lakh monetary penalty on Surat People's Co-operative Bank Ltd., Surat, for non-compliance with RBI directions relating to the Board of Directors of Urban Co-operative Banks (UCBs).
The penalty follows an RBI statutory inspection conducted with reference to the bank's financial position as of March 31, 2025. The inspection revealed that certain directors participated in a Board meeting where proposals in which they had a direct or indirect interest were discussed and approved, violating RBI's governance norms.
RBI clarified that the penalty has been imposed due to deficiencies in regulatory compliance and does not question the validity of any transactions or agreement...