Case Brief
By order dated February 14, 2023, RBI imposed a monetary penalty of ₹50,000 on Shree Samarth Sahakari Bank Ltd., Nashik for non-compliance with RBI directions issued to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs and Board of Directors-UCBs. RBI said the bank had renewed a loan granted to a director’s relative, which constituted contravention of the applicable directions. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank’s replies and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Nashik, Maharashtra