RBI imposes monetary penalty on Krishna Sahakari Bank Limited, Satara

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Krishna Sahakari Bank Limited, Satara, Maharashtra, by order dated July 04, 2024. The penalty was levied under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection for the bank's financial position as on March 31, 2023. RBI said the bank had not complied with certain provisions of its directions on 'Exposure Norms and Statutory/Other Restrictions - UCBs'. After a show-cause notice and consideration of the bank's reply and oral submissions, RBI sustained the charge that the bank sanctioned loans to nominal members beyond the prescribed limit.