RBI Impose Rs 1 Lakh Penalty on Sanmitra Sahakari Bank for Non-Compliance

Pune, 19th December 2023: In a recent development, the Reserve Bank of India (RBI) has taken punitive action against Sanmitra Sahakari Bank Ltd. situated in Pune, Maharashtra. The central bank, through an order dated November 24, 2023, has imposed a monetary fine of ₹1.00 lakh on the bank. This penalty stems from the bank’s failure to adhere to RBI directives concerning the ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks.’ The penalty has been enforced under the authority vested in the RBI, as per the Banking Regulation Act, 1949, sections 47 A(1)(c), 46(4)(i), and 56.

The penalty is a result of identified deficiencies in regulatory compliance and does not intend to pass judgment on the legality of any transactions or agreements between the bank and its customers.

The regulatory scrutiny conducted by RBI, analyzing the bank’s financial status as of March 31, 2022, along with assessments such as the Risk Assessment Report, Inspection Report, and related correspondences, unveiled a significant issue. It was found that the bank had levied fixed penal charges for the shortfall in maintaining the minimum balance in savings accounts, rather than applying charges proportionate to the extent of the shortfall. Subsequently, the bank was served a notice, prompting it to provide reasons why penalties should not be imposed due to non-compliance with the mentioned RBI directives.