Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
6 Aug 2013
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Sarvodaya Sahakari Bank Ltd., Surat (Gujarat) under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank violated its instructions by making a donation beyond the prescribed ceiling. After issuing a show-cause notice and considering the bank’s written reply and personal submissions, RBI concluded that the violation was substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after finding that The Sarvodaya Sahakari Bank Ltd., Surat (Gujarat) had violated RBI instructions by making a donation above the prescribed ceiling. The bank submitted a written reply and made personal submissions, but RBI concluded that the contravention was substantiated and warranted penalty.
Operating Impact
The bank must absorb the Rs 1 lakh penalty; no explicit operational restriction, suspension, or withdrawal is stated. The action does not describe direct customer-facing restrictions, but it signals RBI enforcement for non-compliance with instructions on donations.
Regulatory Basis
- Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank