RBI imposes monetary penalty on Siddheshwar Sahakari Bank Ltd., Latur, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.50 lakh on Siddheshwar Sahakari Bank Ltd., Latur, Maharashtra, by an order dated May 10, 2021. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI found that the bank had contravened or failed to comply with RBI directions issued to Urban Cooperative Banks on Exposure Norms and Statutory/Other Restrictions and on Income Recognition and Asset Classification (IRAC) norms. RBI noted that the action arose from deficiencies in regulatory compliance and was not meant to pronounce on the validity of any transaction or agreement entered into by the bank with its customers.