Case Brief
What Happened
By order dated September 05, 2024, RBI imposed a monetary penalty of Rs 4.50 lakh on Samarth Sahakari Bank Limited, Solapur, Maharashtra. The bank was found to have contravened section 12(2) read with section 56 of the Banking Regulation Act, 1949 and to have failed to comply with RBI's directions on Exposure Norms and Statutory/Other Restrictions for UCBs and operational instructions under the Supervisory Action Framework for Primary (Urban) Co-operative Banks. RBI said the sustained charges included refund of share capital to members despite the bank's last assessed CRAR being below 9%, sanctioning loans to nominal members in excess of the prescribed regulatory limit, and offering higher interest rates on deposits than State Bank of India. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.