Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
18 Jun 2021
Case Brief
RBI imposed a monetary penalty on Aman Sahakari Bank Ltd., Ichalkaranji by order dated June 18, 2021. The penalty was levied for contravention of Supervisory Action Framework (SAF) instructions issued by RBI under Section 36(1) read with Section 56 of the Banking Regulation Act, 1949. RBI said the bank declared and paid dividend for the year 2018-19 without prior permission of RBI, and after considering the bank's reply and oral submissions, concluded that the charge was substantiated.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 because Aman Sahakari Bank Ltd., Ichalkaranji failed to adhere to Supervisory Action Framework (SAF) instructions issued under Section 36(1) read with Section 56. The inspection report found that the bank declared and paid dividend for 2018-19 without prior permission of RBI, constituting non-compliance with the SAF instructions.
Operating Impact
The bank must absorb the ₹3 lakh penalty, and the order serves as a compliance warning for future adherence to RBI supervisory instructions. There is no stated restriction on ongoing operations, but the bank's governance and regulatory compliance practices are under scrutiny.
Regulatory Basis
- Section 36(1) read with section 56 of the Banking Regulation Act, 1949
- Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act
Action Facts
- Primary Impact
- Fine: Rs 3.00 L
- Order Date
- 18 Jun 2021
- Effective From
- 18 Jun 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank