RBI imposes monetary penalty on Shankar Nagari Sahakari Bank Limited, Nanded, Maharashtra

Case Brief

RBI imposed a monetary penalty of ₹1.00 lakh on Shankar Nagari Sahakari Bank Limited, Nanded, Maharashtra, after finding that the bank had contravened RBI directions applicable to urban co-operative banks on Exposure Norms and Statutory/Other Restrictions. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, following a show-cause notice, the bank's written reply, and oral submissions at personal hearing. RBI stated the penalty was based on regulatory compliance deficiencies and did not pronounce on the validity of any customer transaction or agreement.