The Reserve Bank of India (RBI), by an order dated October 29, 2024, has imposed a monetary penalty of ₹25,000 (Rupees Twenty-Five Thousand only) on Manvi Pattana Souharda Sahakari Bank Niyamitha, Manvi, for non-compliance with specific directions issued under the Supervisory Action Framework (SAF). This penalty was imposed under the powers vested in the RBI, as per section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The RBI conducted a statutory inspection of the bank’s financial position as of March 31, 2023. Based on the supervisory findings, which revealed non-compliance with directions under the SAF, a show-cause notice was issued to the bank. This notice asked the bank to explain why a penalty should not be imposed for its failure to adhere to the directions.
After considering the bank’s response to the notice and its oral submissions during a personal hearing, RBI determined that the charge against the bank was sustained, thereby justifying the imposition of the penalty.
The specific violation was that the bank had sanctioned new loans and advances and offered deposit interest rates higher than those offered by the State Bank of India, which violated RBI’s directions under the SAF. The penalty reflects a deficiency in regulatory compliance, but it does not affect the validity of any transactions or agreements made by the bank with its customers.
The imposition of this penalty is separate from any other potential actions that may be taken by the RBI against the bank in the future.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. The views expressed are based on available data and should not be considered as an endorsement or recommendation. Readers are advised to conduct their own research and consult a professional before making any financial decisions.
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