RBI imposes monetary penalty on Sangli Sahakari Bank Limited

The Reserve Bank of India (RBI), has imposed a monetary penalty of Rs. 2,00,000 (Rupees Two lakh only) on Sangli Sahakari Bank Limited, Mumbai (the bank) for non-compliance with the directions issued by RBI on ‘Board of Directors-UCBs’ by an order dated September 15, 2023.

The RBI conducted a statutory inspection of the bank with regard to its financial position as of March 31, 2022, and examination of the Inspection Report, Risk Assessment Report, and all correspondence thereto revealed, inter alia, that the bank had renewed a loan given to a relative of one of its directors.

Following that, a notice was issued to the bank, instructing it to show cause why a penalty should not be imposed on it for failing to comply with the stated directions.

After reviewing the bank‘s response to the notice, the RBI concluded that the charge of non-compliance with the aforementioned RBI directions was proven and warranted the imposition of a monetary penalty on the bank.

This penalty has been imposed in the exercise of powers conferred on RBI under the provisions of Section 47A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949.

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.