Recorded RBI impact
Fine: Rs 5,000
Monetary penalty · Fresh imposition
Published by RBI
12 Feb 2024
Case Brief
By order dated February 08, 2024, RBI imposed a monetary penalty on The Anjangaon Surji Nagari Sahakari Bank Limited, Anjangaon Surji, Maharashtra for contravention of directives and specific directions issued under sections 35A(1) and 36(1) read with section 56 of the Banking Regulation Act, 1949. RBI said its inspection found that the bank allowed withdrawals by depositors beyond the prescribed limit and disbursed fresh loans in violation of directions issued under the Supervisory Action Framework. After considering the bank's reply and submissions, RBI concluded the charges were substantiated and imposed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection found that the bank had permitted depositors to withdraw amounts exceeding the limit prescribed under RBI directions issued under section 35A(1) read with section 56 of the Banking Regulation Act, 1949, and had also disbursed fresh loans in violation of specific directions issued under the Supervisory Action Framework (SAF). RBI concluded that the non-compliance was substantiated and warranted penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Operating Impact
The bank must absorb the monetary penalty and remain compliant with RBI directives on withdrawal limits and lending restrictions. The order does not itself cancel or suspend the bank’s operations, but it underscores ongoing supervisory scrutiny and the need to avoid further breaches.
Regulatory Basis
- Sections 35(A)(1) and 36(1) read with section 56 of the Banking Regulation Act, 1949
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of BR Act
Action Facts
- Primary Impact
- Fine: Rs 5,000
- Order Date
- 8 Feb 2024
- Effective From
- 8 Feb 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank