Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
29 Sept 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on The Sultan’s Battery Co-operative Urban Bank Limited, Wayanad, Kerala. The penalty was imposed after a statutory inspection and subsequent show-cause proceedings found non-compliance with RBI directions relating to loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI stated that the bank had sanctioned director-related loans, and the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a supervisory inspection found non-compliance with RBI directions on 'Loans and advances to directors, their relatives, and firms/concerns in which they are interested'. The sustained charge was that the bank had sanctioned director-related loans.
Operating Impact
The bank must absorb the monetary penalty and any related compliance scrutiny, and RBI noted the action is without prejudice to any further action it may initiate. No direct operational restriction is described in the release, but the bank remains exposed to follow-up supervisory action if similar non-compliance continues.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 25 Sept 2025
- Effective From
- 25 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank