Reserve Bank of India penalizes Sanmitra Sahakari Bank Ltd., Pune
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Sanmitra Sahakari Bank Ltd., Pune under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated operational instructions by opening a new branch without prior permission of the Reserve Bank. After issuing a show-cause notice and considering the bank's written reply, RBI concluded the violation was substantial and warranted the penalty.
The Reserve Bank of India imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for violation of operational instructions. The specific contravention cited was opening a new branch without obtaining prior permission from the Reserve Bank of India. RBI considered the bank's reply to the show-cause notice and concluded the violation was substantial enough to warrant penalty.
Severity Assessment
The action is a monetary penalty of Rs 1 lakh, which falls in the lowest monetary band and no broader operational restriction was imposed.
The bank must absorb the penalty and comply with RBI's branch-opening approval requirements going forward. The action has no stated effect on depositors or customers beyond reinforcing regulatory compliance obligations.
Published as Sanmitra Sahakari Bank Ltd., Pune
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