RBI imposes monetary penalty on Sri Bharathi Co-operative Urban Bank Limited, Hyderabad

Document text

June 29, 2026 RBI imposes monetary penalty on Sri Bharathi Co-operative Urban Bank Limited, Hyderabad The Reserve Bank of India (RBI) has, by an order dated June 25, 2026, imposed a monetary penalty of ₹1.50 lakh (Rupees One Lakh Fifty Thousand only) on Sri Bharathi Co-operative Urban Bank Limited, Hyderabad (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’ and ‘Small Value Loans – Primary (Urban) Co-operative Banks (UCBs)’. 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 RBI with reference to its financial position as on March 31, 2025. 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: i. sanctioned director related loans; and ii. failed to ensure that small value loans comprised at least 40 percent of its aggregate loans and advances as on March 31, 2025. 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: 2026-2027/562 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE भारतीय įरज़वर् बैंक RESERVE BANK OF INDIA 0वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, कᱶᮤीय कायार्लय, शहीद भगत ᳲसंह मागर्, फोटर्, मुंबई - 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