Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
15 Jul 2024
Case Brief
By an order dated July 04, 2024, RBI imposed a monetary penalty of ₹1.00 lakh on Abasaheb Patil Rendal Sahakari Bank Limited, Rendal, Maharashtra. RBI said the penalty was for non-compliance with specific directions issued under the Supervisory Action Framework, including sanctioning fresh loans and advances carrying risk weights of more than 100% in violation of those directions. The action was taken under the Banking Regulation Act, 1949, after statutory inspection and consideration of the bank’s response.
Why RBI Acted
RBI imposed a monetary penalty on Abasaheb Patil Rendal Sahakari Bank Limited after a statutory inspection found non-compliance with specific directions issued under the Supervisory Action Framework (SAF). The sustained charge was that the bank sanctioned fresh loans and advances carrying risk weights of more than 100%, contrary to RBI’s directions. 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 and oral submissions.
Operating Impact
The bank must absorb the monetary penalty; the release does not state any additional operational restriction or withdrawal of business permissions. The action signals continued supervisory scrutiny over the bank’s lending compliance, but it does not by itself impose a forward-looking ban beyond the penalty itself.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 4 Jul 2024
- Effective From
- 4 Jul 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank