Case Brief
RBI, by order dated February 15, 2023, imposed a monetary penalty of Rs 4.00 lakh on The Satara Sahakari Bank Ltd., Mumbai under section 47A(1)(c) of the Banking Regulation Act, 1949. The penalty was for non-compliance with RBI directions on Management of Advances and Exposure Norms and Statutory/Other Restrictions for urban co-operative banks. RBI’s inspection found that the bank did not have a proper mechanism for monitoring the end use of funds and had sanctioned unsecured advances above permissible limits. After considering the bank’s reply, additional submissions, and oral hearing, RBI concluded the contraventions were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai