Reserve Bank of India imposes monetary penalty on Dharamvir Sambhaji Urban Co-operative Bank Ltd., Pune

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Dharamvir Sambhaji Urban Co-operative Bank Ltd., Pune by order dated January 25, 2022. RBI said the bank contravened directions on Exposure Norms and Statutory / Other Restrictions applicable to UCBs, after a select scope inspection found non-adherence to the prudential inter-bank gross exposure limit. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, following consideration of the bank’s written reply, additional submissions, and oral submissions. RBI clarified that the action was based on regulatory compliance deficiencies and was not intended to pronounce on the validity of any transaction or agreement with customers.