Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
20 Feb 2023
Case Brief
By order dated February 14, 2023, RBI imposed a monetary penalty of ₹50,000 on Shree Samarth Sahakari Bank Ltd., Nashik for non-compliance with RBI directions issued to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs and Board of Directors-UCBs. RBI said the bank had renewed a loan granted to a director’s relative, which constituted contravention of the applicable directions. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank’s replies and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty after finding that Shree Samarth Sahakari Bank Ltd., Nashik failed to comply with directions issued to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs and Board of Directors-UCBs. The specific lapse cited in the risk assessment report was renewal of a loan granted to a Director’s relative, which was held to be in contravention of RBI directions. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty; no suspension, restriction, or restoration action is described. The release also clarifies that the penalty does not decide the validity of any transaction or agreement with customers, so the direct forward-looking impact is limited to the bank’s compliance record and regulatory liability.
Regulatory Basis
- Section 47A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 14 Feb 2023
- Effective From
- 14 Feb 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank