Case Brief
By an order dated December 30, 2024, RBI imposed a monetary penalty of Rs 4.20 lakh on Smriti Nagrik Sahakari Bank Maryadit, Mandsaur (MP). The penalty was levied for non-compliance with RBI directions on customer service for urban cooperative banks and on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI's supervisory review found that the bank recovered SMS alert charges from customers not on an actual-usage basis and sanctioned a loan to the relative of a director. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank's reply, oral submissions, and additional submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 4.20 L
- Entity Type
- Co-operative bank
- Location
- Mandsaur, MP