About Us     Useful Information     FAQs     Financial Education     Complaints   Important Websites  
Home >> PressReleases - Display
Note : To obtain an aligned printout please download the (346.00 kb ) version to your machine and then use respective software to print the story.
Date: 27/03/2023
RBI imposes monetary penalty on Vyapari Sahakari Bank Maryadit, Solapur (Maharashtra)

The Reserve Bank of India (RBl) has imposed, by an order dated March 24, 2023, a monetary penalty of ₹2.00 lakh (Rupees Two lakh only) on Vyapari Sahakari Bank Maryadit, Solapur (Maharashtra) (the bank) for contravention of/ non-adherence with the directions issued by RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions - UCBs and Board of Directors-UCBs. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

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.


The inspection report of the bank based on its financial position as on March 31, 2021, revealed, inter alia, that the bank had (i) given donation in excess of the permissible limit and (ii) sanctioned director related loans in contravention of/non-compliance with the aforesaid directions issued by RBI. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

After considering the bank's replies and oral submissions made during personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/1924

  © Reserve Bank of India. All Rights Reserved.

Best viewed in 1024x768 resolution in IE 5 and above.