RBI imposes monetary penalty on Ratanchand Shah Sahakari Bank Limited, Mangalwedha, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty on Ratanchand Shah Sahakari Bank Limited, Mangalwedha, Maharashtra by order dated May 30, 2025. The penalty was levied after RBI found non-compliance with certain KYC directions and specific directions issued under the Supervisory Action Framework (SAF). The cited violations included offering higher interest rates on deposits than State Bank of India in breach of SAF directions, breaching the single borrower exposure limit for fresh loans and advances in some instances, and allocating multiple customer identification codes instead of a UCIC for each customer. RBI stated the action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.