Recorded RBI impact
Fine: Rs 2.10 L
Monetary penalty · Fresh imposition
Published by RBI
30 Jan 2025
Case Brief
By order dated January 27, 2025, RBI imposed a monetary penalty of ₹2.10 lakh on Shree Savli Nagrik Sahakari Bank Ltd., Dist. Vadodara, Gujarat. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2023, and was based on sustained charges relating to contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on investments by primary (urban) co-operative banks, KYC, and CIC membership/reporting requirements. RBI found that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, breached the ceiling on total investments held under the HTM category, failed to upload customer KYC records to CKYCR within the prescribed time, and failed to submit borrowers’ credit information to three CICs.
Why RBI Acted
RBI imposed a monetary penalty after supervisory inspection found sustained contraventions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on Investment by Primary (Urban) Co-operative Banks, Know Your Customer (KYC), and Membership of Credit Information Companies (CICs) by Co-operative Banks. Specific lapses included failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, breach of the ceiling on investments held under the Held to Maturity (HTM) category, failure to upload customer KYC records to CKYCR within the prescribed time, and failure to submit borrowers' credit information to three CICs. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act and Section 25 of the CICRA, 2005.
Operating Impact
The bank must absorb the monetary penalty and address the compliance deficiencies identified by RBI. The order does not itself alter the validity of customer transactions, but it signals continued supervisory scrutiny and leaves open the possibility of further action by RBI if warranted.
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
- Section 25 of the Credit Information Companies (Regulation) Act, 2005
Action Facts
- Primary Impact
- Fine: Rs 2.10 L
- Order Date
- 27 Jan 2025
- Effective From
- 27 Jan 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank