Case Brief
By an order dated April 29, 2024, RBI imposed a monetary penalty of ₹2.00 lakh on The Satara Sahakari Bank Limited, Mumbai, Maharashtra. The penalty was imposed for non-compliance with section 12(2) read with section 56 of the Banking Regulation Act, 1949 and RBI directions on prudential norms on capital adequacy for primary (urban) co-operative banks. RBI's inspection and subsequent supervisory review found that the bank allowed refund of share capital to its members despite its last assessed CRAR being below 9 percent. After issuing a show-cause notice and considering the bank's reply, RBI sustained the charge and imposed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra