Case Brief
By an order dated October 23, 2025, RBI imposed a monetary penalty of ₹2 lakh on The Satara Sahakari Bank Ltd., Mumbai, Maharashtra. The penalty was for non-compliance with RBI directions on prudential capital adequacy norms for urban co-operative banks and on exposure limits to single/group borrowers and large exposures, as well as priority sector lending targets for UCBs. RBI stated that the statutory inspection, conducted with reference to the bank’s financial position as on March 31, 2024, found that the bank refunded share capital despite its CRAR being below the regulatory minimum and breached the prudential single borrower exposure limit in certain instances. After a show-cause process, oral hearing, and additional submissions, RBI sustained the charges and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location