Case Brief
RBI, by order dated March 03, 2025, imposed a monetary penalty of Rs 2 lakh on Sri Basaveshwar Sahakar Bank Niyamitha, Gulbarga, Karnataka. The penalty was imposed after RBI's statutory inspection and subsequent proceedings found non-compliance with directions on exposure norms and statutory/other restrictions applicable to UCBs, donations/contributions for public or charitable purposes out of profits of UCBs, and Know Your Customer requirements. RBI recorded that the bank breached prudential inter-bank and inter-bank counterparty exposure limits, made donations above the prescribed regulatory cap, and failed to upload KYC records to CKYCR within the stipulated timeline. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location