Case Brief
By an order dated May 29, 2023, RBI imposed a monetary penalty of ₹3.00 lakh on Sawantwadi Urban Co-operative Bank Ltd., Sawantwadi, Maharashtra. The penalty was for contravention of RBI’s Supervisory Action Framework directions issued under section 36(1) read with section 56 of the Banking Regulation Act, 1949. RBI’s inspection, based on the bank’s financial position as on March 31, 2022, found that despite SAF restrictions the bank sanctioned fresh loans and advances outside the permitted category and offered term-deposit interest rates higher than those offered by State Bank of India. After a show-cause notice and consideration of the bank’s reply, RBI concluded that the non-compliance was substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Sawantwadi, Maharashtra