Case Brief
What Happened
RBI, by order dated January 25, 2022, imposed a monetary penalty of ₹2.00 lakh on Hutatma Sahakari Bank Ltd., Walwa, Sangli. The bank was found to have contravened RBI directions on Exposure Norms and Statutory/Other Restrictions - UCBs, specifically by not adhering to the ceiling on advances to nominal members in certain cases. RBI issued a show-cause notice, considered the bank's reply, and then concluded that the non-compliance was substantiated and merited the penalty under the Banking Regulation Act, 1949.