Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on The Yavatmal Urban Co-operative Bank Limited, Yavatmal, Maharashtra, by order dated December 26, 2024. The penalty was imposed after RBI's supervisory inspection found non-compliance with directions issued under the Supervisory Action Framework (SAF) and certain directions under Exposure Norms & Statutory / Other Restrictions – UCBs. RBI stated that the bank had sanctioned fresh loans and advances carrying risk weights of more than 100% contrary to SAF directions, and had sanctioned loans to nominal members beyond the prescribed regulatory limit. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.