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Annasaheb Magar Sahakari Bank Ltd., Pune, Maharashtra

Co-operative bankPune, Maharashtra

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 4.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

12 Oct 2023

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹4.00 lakh on Annasaheb Magar Sahakari Bank Ltd., Pune, Maharashtra. The penalty was issued for non-compliance with RBI directions relating to KYC, maintenance of deposit accounts for urban co-operative banks, and income recognition, asset classification, and provisioning. RBI’s inspection found that the bank did not periodically review the risk categorization of accounts, levied fixed penal charges for shortfall in minimum balance instead of proportionate charges, and failed to adhere to prudential norms on income recognition, asset classification, and provisioning. RBI concluded that the contraventions were substantiated after considering the bank’s reply and hearing.

Why RBI Acted

KYC / AMLCustomer protectionReporting & disclosureCapital & exposure norms

RBI imposed a monetary penalty on Annasaheb Magar Sahakari Bank Ltd., Pune, Maharashtra under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. In its statutory inspection, RBI found that the bank had not conducted periodic review of risk categorization of accounts, had collected fixed penal charges for shortfall in minimum balance in savings accounts instead of charges proportionate to the shortfall, and had not adhered to prudential norms relating to income recognition, asset classification, and provisioning. The penalty was imposed for non-compliance with RBI directions on KYC, maintenance of deposit accounts, and income recognition/asset classification/provisioning.

Operating Impact

The bank must bear the monetary penalty and address the compliance gaps identified by RBI. The action has no stated restriction on operations, but it signals continued supervisory scrutiny over KYC processes, deposit-account charges, and prudential asset-classification/provisioning practices.

Regulatory Basis

  • Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949

Action Facts

Primary Impact
Fine: Rs 4.00 L
Order Date
15 Sept 2023
Effective From
15 Sept 2023
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank