Case Brief
What Happened
RBI, by order dated February 22, 2024, imposed a monetary penalty of Rs 23.30 lakh on Shikshak Sahakari Bank Limited, Nagpur under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty followed a statutory inspection and related review that found the bank had sanctioned certain fresh loans and advances carrying risk weight of more than 100% during FY 2020-21, in non-compliance with RBI operational instructions issued on January 24, 2020 under the Supervisory Action Framework for Primary (Urban) Co-operative Banks. RBI stated that the contravention was substantiated after considering the bank's reply and oral submissions.