Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Samata Cooperative Development Bank Limited, Kolkata, by order dated March 22, 2022. The penalty was for contravention of RBI directions to urban cooperative banks on Exposure Norms and Statutory/Other Restrictions, after scrutiny showed the bank had exceeded the ceiling on unsecured advances for individual/group borrowers. RBI said the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a show-cause notice, the bank's reply, and oral submissions.