RBI imposes monetary penalty on Nagrik Sahakari Bank Maryadit, Raipur (C.G)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹4.50 lakh on Nagrik Sahakari Bank Maryadit, Raipur, Chhattisgarh, by order dated April 25, 2023. The penalty was for contravention of RBI directions issued under the Supervisory Action Framework, section 36(1) read with section 56 of the Banking Regulation Act, 1949, and RBI Directions on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer requirements. RBI found that the bank sanctioned loans and advances in violation of operational instructions, breached prudential inter-bank exposure limits, failed to comply with the single counterparty limit, and did not complete customer risk categorisation. After a show-cause process and personal hearing, RBI concluded that the violations were substantiated and imposed the penalty.