RBI Fines Gayatri Co-operative Urban Bank in Telangana for Rule Breach

The Reserve Bank of India (RBI) has levied a monetary penalty on Gayatri Co-operative Urban Bank Ltd., located in Jagtial, Telangana. The action was taken after the bank was found to be in violation of certain regulatory guidelines. According to RBI’s statement, the penalty does not affect the validity of any transactions or agreements made with the bank’s customers. Instead, it serves as a corrective measure to ensure that the bank adheres to the standards expected from co-operative banking institutions. This move highlights RBI’s continued focus on maintaining transparency and accountability in the financial sector, especially among smaller co-operative banks that cater to local communities. Regulators emphasized that even regional banks must strictly comply with operational and prudential norms. The penalty against Gayatri Co-operative Urban Bank is one of several recent enforcement actions by the central bank. Such measures are intended to reinforce discipline and safeguard depositor interests while strengthening the co-operative banking ecosystem.