RBI imposes monetary penalty on Nagrik Sahakari Bank Maryadit, Raipur, Chhattisgarh

Case Brief

By an order dated September 05, 2024, RBI imposed a monetary penalty of Rs 3.50 lakh on Nagrik Sahakari Bank Maryadit, Raipur, Chhattisgarh. 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 with reference to the bank’s financial position as on March 31, 2023. RBI found that the bank had sanctioned loans to nominal members in excess of the prescribed regulatory limit and had breached the prudential inter-bank gross exposure limit as well as the prudential inter-bank counterparty limit, contrary to RBI directions on exposure norms and investments by primary urban co-operative banks.