Case Brief
What Happened
RBI imposed a monetary penalty of ₹65 lakh on Equitas Small Finance Bank Limited by order dated January 20, 2025. The penalty was imposed after a supervisory inspection and a show-cause process found that the bank had levied foreclosure charges on certain floating rate term loans sanctioned to individual borrowers for non-business purposes and had obtained collateral security for certain agricultural loans up to ₹1.6 lakh, contrary to RBI directions on foreclosure charges and collateral-free agricultural lending. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.