Case Brief
What Happened
RBI imposed a monetary penalty on Nagrik Sahakari Bank Maryadit, Jagdalpur, Chhattisgarh by order dated December 05, 2022. The bank was penalized for non-adherence with RBI directions issued to urban co-operative banks on Board of Directors, Exposure Norms & Statutory/Other Restrictions-UCBs and KYC, under the Banking Regulation Act, 1949. The inspection revealed excess donations, breaches of inter-bank exposure and counterparty limits, failure to periodically review risk categorisation, and absence of a system to detect suspicious transactions. RBI concluded the violations were substantiated after considering the bank's response and imposed a penalty of Rs 1.25 lakh.