Case Brief
The Reserve Bank of India imposed a monetary penalty on Nagar Sahakari Bank Ltd., Maharajganj, UP by order dated October 27, 2022. The penalty was for non-compliance with directions issued under the Supervisory Action Framework (SAF). RBI said an inspection of the bank’s financial position as on March 31, 2021 revealed that the bank had extended fresh loans and advances carrying risk weights of 100% and above and had offered interest on deposits for various tenors at rates higher than reference rates, both in contravention of RBI directions. After issuing a notice, considering the bank’s reply and oral submissions, RBI concluded the charges were substantiated and imposed a penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 L
- Entity Type
- Co-operative bank
- Location
- Maharajganj, Uttar Pradesh