Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Dahanu Road Janata Co-operative Bank Ltd., Dahanu Road, Maharashtra, by order dated September 01, 2025. The action followed a statutory inspection and a show-cause process that found the bank had not complied with specific RBI directions issued under the Supervisory Action Framework (SAF). In particular, RBI sustained the charge that the bank did not reduce both single and group borrower exposure limits for certain fresh loans and advances by 25% of the applicable regulatory limit. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.