Recorded RBI impact
Fine: Rs 25,000
Monetary penalty · Fresh imposition
Published by RBI
7 Nov 2024
Case Brief
RBI imposed a monetary penalty of Rs 25,000 on Manvi Pattana Souharda Sahakari Bank Niyamitha, Manvi, Karnataka, by order dated October 29, 2024. The penalty was based on supervisory findings that the bank failed to comply with specific directions issued under the Supervisory Action Framework (SAF), including sanctioning fresh loans and advances and offering deposit interest rates higher than State Bank of India, contrary to RBI directions. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a show-cause notice and consideration of the bank’s reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection found the bank had not complied with specific directions issued under the Supervisory Action Framework (SAF). The sustained charge was that the bank sanctioned fresh loans and advances and offered interest rates on deposits higher than State Bank of India, contrary to RBI’s SAF-related directions and correspondence. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and remains subject to RBI’s supervisory framework. The release does not say any operating restriction was imposed, but RBI indicates further action may still be initiated if warranted.
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 25,000
- Order Date
- 29 Oct 2024
- Effective From
- 29 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank