Case Brief
By order dated March 27, 2024, RBI imposed a monetary penalty of ₹5.00 lakh on The Nagar Sahkari Bank Ltd., Maharajganj for non-compliance with specific directions issued under the Supervisory Action Framework (SAF). The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after inspection findings showed that the bank had incurred operating expenses on gifting silver coins to shareholders despite RBI directions to curtail operating and administrative expenses to the maximum extent possible. RBI noted that the action is based on regulatory deficiencies and does not pronounce on customer transactions.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Maharajganj