Ahmedabad: The Reserve Bank of India (RBI) has fined ₹25 lakh on Mehsana Urban Cooperative Bank for not complying with certain regulatory provisions. This penalty has been imposed after the bank failed to classify certain loans and credit facilities as non-performing assets (NPA), as per the required norms.
This penalty was imposed after the RBI issued a show-cause notice to the bank, asking why the penalty should not be levied. After examining the banks’ books and the bank representative’s responses, the RBI found the responses unsatisfactory and proceeded to impose the ₹25 lakh penalty on the bank. According to the RBI’s press release, the penalty was imposed on an order dated October 28, 2025, under Section 47A(1)(c) and Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
This is not the first time the bank has been penalised. It has repeatedly been fined by the RBI- in July 2024, December 2021 and May 2018, with penalties of ₹5.9 crore, ₹5 crore and ₹ 1 crore respectively.
These penalties have been imposed due to the deficiencies in the bank’s compliance requirements and do not affect the validity of the transactions between the bank and its customers. The central bank further noted that the penalty will also not affect the other regulations or supervisory norms that may be taken against the bank in the future.
