RBI imposes monetary penalty on Nagrik Sahakari Bank Maryadit, Shivpuri (Madhya Pradesh)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Nagrik Sahakari Bank Maryadit, Shivpuri (Madhya Pradesh) for non-compliance with RBI directions on Exposure Norms & Statutory/Other Restrictions on UCBs and on KYC. RBI said the statutory inspection with reference to the bank's financial position as on March 31, 2022, revealed that the bank breached the prudential inter-bank (gross) exposure limit and did not conduct periodic six-monthly review of customers' risk categorization. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI considered the bank's response and oral submissions.