Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹10.50 lakh on Shri Kanyaka Nagari Sahakari Bank Limited, Chandrapur, Maharashtra, by an order dated November 17, 2021. The penalty was for contravention/non-compliance with the Supervisory Action Framework and RBI directions relating to opening of on-site ATMs, fraud classification and reporting, exposure norms, statutory/other restrictions for urban co-operative banks, and board-related directions. RBI said the bank had extended fresh loans to the real estate sector, opened on-site ATMs without permission, delayed fraud reporting, and granted director-related loans in breach of RBI instructions. RBI stated that the action was based on regulatory compliance deficiencies and not intended to pronounce on the validity of customer transactions.