Case Brief
The Reserve Bank of India penalised Shree Siddhivinayak Nagari Sahakari Bank Ltd., Raigad by Rs 1.00 lakh under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found violations of its directive/guidelines relating to single-party credit exposure, loans to directors and their relatives or associated firms, fraudulently created deposits, fictitious credits from head-office accounts to loan accounts, understatement of liabilities, non-adherence to KYC norms, and failure in customer risk categorisation. After issuing a show-cause notice and reviewing the bank's written response, RBI concluded that the contraventions were substantiated and justified the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Raigad, Maharashtra