Sardarganj Mercantile Co-op. Bank Ltd

RBI imposed a monetary penalty after finding that Sardarganj Mercantile Co-op. Bank Ltd. violated instructions by allowing premature withdrawal of fixed deposits despite operational instructions imposed under section 36(1) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI also held that the bank did not reckon accumulated loss while computing capital fund for prudential exposure limits and did not obtain RBI approval for the computation of its prudential exposure limit. The penalty was imposed under section 47A(1)(b) read with section 46(4) of the Banking Regulation Act, 1949.

The bank must bear the Rs 2 lakh penalty and the findings remain a regulatory record. The conduct highlights continued compliance obligations around fixed-deposit restrictions, capital computation, and prudential exposure-limit approvals; the release does not mention any new operational ban or restoration issue affecting customers beyond the cited violations.