Case Brief
By an order dated March 16, 2023, RBI imposed a monetary penalty of ₹1.00 lakh on Raigad Sahakari bank Ltd., Mumbai. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 for contravention of operational instructions issued under the Supervisory Action Framework (SAF). RBI’s statutory inspection (with reference to the bank’s financial position as on March 31, 2021) found that the bank had sanctioned fresh gold loans to borrowers in non-adherence to those instructions. After considering the bank’s reply, RBI held the charge of non-compliance substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai