Case Brief
What Happened
By an order dated December 30, 2024, RBI imposed a monetary penalty of Rs 4.20 lakh on Smriti Nagrik Sahakari Bank Maryadit, Mandsaur (MP). The penalty was levied for non-compliance with RBI directions on customer service for urban cooperative banks and on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI's supervisory review found that the bank recovered SMS alert charges from customers not on an actual-usage basis and sanctioned a loan to the relative of a director. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank's reply, oral submissions, and additional submissions.