Swasakthi Mercantile Co-operative Urban Bank Ltd

RBI imposed a ₹5 lakh penalty on The Swasakthi Mercantile Cooperative Urban Bank Ltd., Vijayawada. The bank was found non-compliant with RBI directions on Board of Directors for UCBs.

The bank must absorb the ₹5 lakh penalty, but the release does not impose any operational restriction or withdrawal of business permissions. The action signals a regulatory compliance lapse related to governance requirements for urban cooperative banks.

• Section 47 A (1) (c)
• Section 46 (4) (i)
• Section 56 of the Banking Regulation Act, 1949

RBI imposed a penalty of Rs 1 lakh on Swasakthi Mercantile Co-operative Urban Bank Ltd., Vijayawada. The action was for violations related to loans and advances to directors and their relatives.

The bank must absorb the monetary penalty; the release does not indicate any operational restriction or licence-related action. The adverse finding may also matter for supervisory scrutiny around related-party lending and governance controls.

• Section 47A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
• Section 20 of the Banking Regulation Act, 1949 (AACS)