Case Brief
By an order dated March 13, 2024, RBI imposed a monetary penalty of Rs 28.30 lakh on Solapur Janata Sahakari Bank Limited, Solapur. The bank was found non-compliant with RBI directions on Constitution of Board of Management in Primary (Urban) Co-operative Banks and with a prohibitory order/direction issued under the Supervisory Action Framework. RBI said the bank appointed a BoM member who did not meet the Fit and Proper criteria, did not reconstitute the BoM within the specified time despite RBI’s direction, and sanctioned fresh loans carrying risk weights of more than 100% during FY 2021-22 in violation of the SAF direction. The penalty was imposed under the Banking Regulation Act, 1949 after inspection, notice, reply, and oral hearing.
Action Snapshot
- Primary Impact
- Fine: Rs 28.3 L
- Entity Type
- Co-operative bank
- Location