Recorded RBI impact
Fine: Rs 3.50 L
Monetary penalty · Fresh imposition
Published by RBI
9 Dec 2024
Case Brief
RBI imposed a monetary penalty of ₹3.50 lakh on Apani Sahkari Bank Ltd., Ahmedabad, Gujarat, after a statutory inspection found several compliance lapses. The violations included contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949, and non-compliance with RBI directions on loans to directors and their relatives, placement of deposits with other banks, and KYC obligations. RBI cited failures relating to unclaimed amounts transfer, a loan to a director's relative, exposure-limit breaches, KYC record uploads, and customer risk categorisation.
Why RBI Acted
Following a statutory inspection with reference to the bank's financial position as on March 31, 2023, RBI found sustained charges including failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, sanctioning a loan to the relative of a director, breach of prudential inter-bank (gross) and counterparty exposure limits, failure to upload KYC records of certain customers to the Central KYC Records Registry within the prescribed timeline, and failure to carry out risk categorisation of certain customers. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Operating Impact
The bank must absorb the monetary penalty; the order does not itself impose an operational restriction, but it signals supervisory non-compliance and leaves RBI free to initiate further action if warranted. The penalty does not invalidate customer transactions or agreements.
Regulatory Basis
- Section 26A read with Section 56 of the Banking Regulation Act, 1949
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 3.50 L
- Order Date
- 4 Dec 2024
- Effective From
- 4 Dec 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank