Mumbai (Maharashtra) [India], November 20 (ANI): Reserve Bank of India (RBI) has imposed a monetary penalty of Rs two lakh on Sangli Sahakari Bank Limited, Mumbai, for "non-compliance with the directions issued by RBI on 'Board of Directors-UCBs'".

An RBI release said this penalty has been imposed in the exercise of powers conferred on RBI under the provisions 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," the release said.

It said the statutory inspection of the bank conducted by RBI with reference to its financial position as of March 31, 2022, and examination of the Inspection report, Risk Assessment Report and all correspondence revealed that the bank had renewed a loan given to a relative of one of its directors.

Subsequently, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the requisite directions.

"After considering the bank's reply to the notice, RBI came to the conclusion that the charge of non-compliance with the aforesaid directions issued by RBI was substantiated and warranted imposition of monetary penalty on the bank," the release said.

The requisite order for monetary penalty was made by RBI in September this year. (ANI)