Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Sanmitra Sahakari Bank Maryadit, Mumbai under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated instructions and guidelines relating to single borrower exposure limit, unsecured individual borrower limit, and Know Your Customer (KYC)/Anti-Money Laundering (AML) requirements. After a show-cause notice, and considering the bank’s written and oral submissions, RBI concluded that the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra