The Vaijapur Merchants Co-operative Bank Ltd., Vaijapur, Maharashtra

RBI imposed a penalty of Rs 7.50 lakh on The Vaijapur Merchants Co-operative Bank Limited, Vaijapur, Maharashtra. The bank was penalized for breaching SAF directions and certain KYC-related directions.

The bank must absorb the monetary penalty and address the compliance gaps identified by RBI, including adherence to SAF directions and strengthening KYC/AML controls and suspicious-transaction alert systems. RBI stated that the penalty is without prejudice to any other action it may initiate.

• section 47A(1)(c) read with section 46(4)(i) and section 56 of the Banking Regulation Act, 1949

RBI imposed a monetary penalty of Rs 2.50 lakh on The Vaijapur Merchants Co-operative Bank Ltd., Vaijapur, Maharashtra. The penalty was for violating RBI directions under the Supervisory Action Framework by sanctioning fresh hypothecation loans beyond the revised exposure limit.

The bank must absorb the financial penalty and may still face any other action RBI chooses to initiate separately. The release does not indicate a business restriction or suspension, but it confirms regulatory non-compliance in lending/exposure management.

• section 47A(1)(c) read with section 46(4)(i) and section 56 of the Banking Regulation Act, 1949