Kunbi Sahakari Bank Ltd., Mumbai, Maharashtra

RBI imposed a monetary penalty on Kunbi Sahakari Bank Ltd. for non-compliance with specific directions issued under the Supervisory Action Framework (SAF) and certain directions on Know Your Customer (KYC). In the supervisory inspection with reference to the bank’s financial position as on March 31, 2024, RBI found that the bank had sanctioned fresh loans and advances without collateral security of term deposits/NSCs/KVPs/insurance policies, breached the applicable single exposure limit for fresh loans and advances in some instances, and failed to conduct periodic review of risk categorisation of accounts as required. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.

The bank must absorb the monetary penalty and remain subject to RBI supervision. Going forward, it is expected to strengthen loan-sanction controls, exposure-limit monitoring, and periodic risk-categorisation reviews; the action does not by itself void customer transactions, but it signals continuing regulatory scrutiny.