New Delhi: The Reserve Bank of India (RBI) has, by an order dated July 31, 2025, imposed a monetary penalty of ₹1 lakh on The Chanasma Nagrik Sahakari Bank Limited, Chanasma, in Gujarat, for non-compliance with certain directions issued by RBI on Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions.

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, 2024. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank.

The bank failed to provide customers with 24×7 access to report unauthorised electronic banking transactions through multiple channels, and failed to enable its customers to instantly respond by “Reply” to SMS alerts to notify objections to unauthorised electronic banking transactions, if any.

After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the charges against the bank were sustained, warranting the imposition of a monetary penalty. DeshGujarat