RBI imposes monetary penalty on Sadbhav Nagarik Sahakari Bank Maryadit, Chhatarpur (MP)

Case Brief

By an order dated April 02, 2024, RBI imposed a monetary penalty of ₹1.00 lakh on Sadbhav Nagarik Sahakari Bank Maryadit, Chhatarpur. The penalty followed a statutory inspection and show-cause process, and was based on supervisory findings that the bank had not complied with RBI operational instructions issued under the Supervisory Action Framework (SAF) for Primary (Urban) Co-operative Banks. RBI specifically noted that the bank failed to reduce the single borrower exposure limit for fresh loans and advances by 50% of the applicable regulatory limit, contrary to the directions issued under SAF. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.