RBI imposes monetary penalty on Nagrik Sahakari Bank Maryadit, Raigarh, Chattisgarh

Case Brief

By an order dated December 05, 2022, RBI imposed a monetary penalty on Nagrik Sahakari Bank Maryadit, Raigarh, Chhattisgarh for contravention of RBI directions issued to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC). RBI said the bank had not adhered to the prudential inter-bank gross exposure limit, had not complied with the prudential inter-bank counterparty limit, and had not carried out periodic review of risk categorisation of accounts. After considering the bank's replies and oral/additional submissions, RBI concluded the charges were substantiated and warranted the penalty under the Banking Regulation Act, 1949.