RBI · Enforcement
RBI fines Surat People's Co-operative Bank ₹13.30 lakh
Penalty for directors' conflict of interest in board meetings
What changed
- RBI imposed ₹13.30 lakh penalty on Surat People's Co-operative Bank
- Directors participated in board meetings where they had vested interest
The read
RBI penalised Surat People's Co-operative Bank ₹13.30 lakh for allowing directors to vote on proposals where they had a direct or indirect interest. The statutory inspection as of March 31, 2025, revealed the breach of directions on urban co-operative bank boards. The fine shows that conflict-of-interest rules apply to all directors. RBI maintains a zero-tolerance stance on governance lapses in co-operative banks.
Key numbers
- Penalty: ₹13.30 lakh
- Date of order: July 10, 2026
- Inspection reference: March 31, 2025
Primary source: rbi.org.in