Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹10.50 lakh on Shri Kanyaka Nagari Sahakari Bank Limited, Chandrapur, Maharashtra, by an order dated November 17, 2021. The penalty was for contravention/non-compliance with the Supervisory Action Framework and RBI directions relating to opening of on-site ATMs, fraud classification and reporting, exposure norms, statutory/other restrictions for urban co-operative banks, and board-related directions. RBI said the bank had extended fresh loans to the real estate sector, opened on-site ATMs without permission, delayed fraud reporting, and granted director-related loans in breach of RBI instructions. RBI stated that the action was based on regulatory compliance deficiencies and not intended to pronounce on the validity of customer transactions.
Action Snapshot
- Primary Impact
- Fine: Rs 10.5 L
- Entity Type
- Co-operative bank
- Location