The Reserve Bank of India has imposed a monetary penalty of ?1.00 lakh on Sadbhav Nagarik Sahakari Bank Maryadit, Chhatarpur for non-compliance with operational instructions issued by RBI under ‘Supervisory Action Framework (SAF) for Primary (Urban) Co-operative Banks (UCBs)’.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2022. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank.
After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, RBI found, inter alia, that the charge of not reducing single borrower exposure limit, for fresh loans and advances, by 50% of the applicable regulatory limit in violation of specific directions issued under SAF was sustained, warranting imposition of monetary penalty.
“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank”, says the RBI in a press release