RBI imposes monetary penalty on Sangli Sahakari Bank Limited, Mumbai, Maharashtra
Case Brief
By an order dated September 15, 2023, RBI imposed a monetary penalty on Sangli Sahakari Bank Limited, Mumbai, for non-compliance with directions issued on 'Board of Directors-UCBs'. The inspection found that the bank had renewed a loan given to a relative of one of its directors. After considering the bank's reply to the show-cause notice, RBI held that the contravention was substantiated and warranted a penalty under the Banking Regulation Act, 1949.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after a statutory inspection and review of related reports found that Sangli Sahakari Bank Limited had renewed a loan given to a relative of one of its directors. RBI concluded that the bank had failed to comply with the RBI directions on 'Board of Directors-UCBs'.
Severity Assessment
This is a monetary penalty of Rs 2 lakh, which falls in the lowest monetary band (<= Rs 5 lakh), with no additional structural restriction.
The bank must absorb the Rs 2 lakh penalty and continue complying with RBI's board-governance directions. The order does not invalidate customer transactions, but it signals regulatory non-compliance and may affect supervisory scrutiny.
Published as Sangli Sahakari Bank Limited
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Sangli Sahakari Bank Ltd.
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Sangli Sahakari Bank Limited
Business restriction · Extension
Sangli Sahakari Bank Limited
Business restriction · Extension
Sangli Sahakari Bank Limited
Business restriction · Extension
Sangli Sahakari Bank Limited
Business restriction · Extension
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