RBI Slaps Rs 4.20 Lakh Penalty on Smriti Nagrik Sahakari Bank for Non-Compliance
The penalty was imposed under the provisions of the Banking Regulation Act, 1949, after considering the bank's response to a show-cause notice
Smriti Nagrik Sahakari Bank Maryadit
The Reserve Bank of India (RBI) has imposed a monetary penalty of RS 4.20 lakh on Smriti Nagrik Sahakari Bank Maryadit, Mandsaur (MP), for non-compliance with specific RBI guidelines related to customer service and loan practices. These include directions on 'Customer Service - UCBs' and 'Loans and advances to directors, their relatives, and associated entities.'
Join PSU Connect on WhatsApp now for quick updates! Click here
Read Also : NTPC Auraiya celebrated its 38th Raising Day
The penalty, announced on December 30, 2024, follows an inspection of the bank's financial position as of March 31, 2023. The inspection revealed irregularities, including the recovery of SMS alert charges not based on actual usage and the sanctioning of a loan to the relative of a bank director.
The penalty was imposed under the provisions of the Banking Regulation Act, 1949, after considering the bank's response to a show-cause notice, oral submissions during a hearing, and additional statements. This action addresses regulatory compliance deficiencies and does not affect the validity of any transactions between the bank and its customers. Further actions by RBI, if any, remain open.
Read Also : PM Modi inaugurates Bharat Mobility Global Expo 2025, highlights India’s growing auto sector