**Executive Summary**
On November 4, 2025, the Reserve Bank of India (RBI) issued a press release stating it has imposed a monetary penalty of ₹2 lakh on The Satara Sahakari Bank Ltd. The penalty, ordered on October 23, 2025, is due to non-compliance with RBI directions on prudential norms, exposure limits, and priority sector lending. The statutory inspection was conducted based on the bank's financial position as of March 31, 2024.
**Key Points / Main Content**
* **Monetary Penalty:**
* RBI imposed a monetary penalty of ₹2 lakh on The Satara Sahakari Bank Ltd., Mumbai.
* The penalty was imposed via an order dated October 23, 2025.
* **Reason for Penalty:**
* Non-compliance with RBI directions related to:
* Prudential Norms on Capital Adequacy – Primary (Urban) Co-operative Banks (UCBs).
* Limits on exposure to single and group borrowers/parties and large exposures.
* Revision in the target for priority sector lending - UCBs.
* **Basis of Penalty:**
* The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* The statutory inspection of the bank was conducted by RBI based on its financial position as of March 31, 2024.
* The decision was made after considering the bank's reply to a show-cause notice, oral submissions during a personal hearing, and additional submissions.
* **Specific Violations:**
* The bank had refunded share capital despite its CRAR being less than the regulatory minimum.
* The bank breached prudential single borrower exposure limits in certain instances.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance.
* The action is not intended to question the validity of transactions or agreements entered into by the bank with its customers.
* The monetary penalty is without prejudice to any other action RBI may initiate against the bank.
**Impact Analysis**
**The Satara Sahakari Bank Ltd.**
* **Impact:** Financial penalty imposed.
* **Action Required:** The bank must address the deficiencies in regulatory compliance to avoid further penalties and potential regulatory actions by the RBI.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed a monetary penalty for non-compliance with directions.
The Satara Sahakari Bank Ltd., Mumbai, Maharashtra: Bank on which RBI imposed a monetary penalty.
Banking Regulation Act, 1949: Act under which the RBI exercised its powers.
Prudential Norms on Capital Adequacy – Primary (Urban) Co-operative Banks (UCBs): RBI directions for which the bank was penalized for non-compliance
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
November 04, 2025
RBI imposes monetary penalty on The Satara Sahakari Bank Ltd.,
Mumbai, Maharashtra
The Reserve Bank of India (RBI) has, by an order dated October 23, 2025, imposed
a monetary penalty of ₹2 lakh (Rupees Two Lakh only) on The Satara Sahakari Bank
Ltd., Mumbai, Maharashtra (the bank) for non-compliance with certain directions
issued by RBI on ‘Prudential Norms on Capital Adequacy – Primary (Urban) Co-
operative Banks (UCBs)’ and ‘Limits on exposure to single and group
borrowers/parties and large exposures and Revision in the target for priority sector
lending - UCBs’. This penalty has been imposed in exercise of powers conferred on
RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the
Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its
financial position as on March 31, 2024. Based on supervisory findings of non-
compliance with RBI directions and related correspondence in that regard, a notice
was issued to the bank advising it to show cause as to why penalty should not be
imposed on it for its failure to comply with the said directions. After considering the
bank’s reply to the notice, oral submissions made during the personal hearing and
additional submissions made by it, RBI found, inter alia, that the following charges
against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
i. refunded share capital despite its CRAR being less than the regulatory
minimum; and
ii. breached prudential single borrower exposure limit in certain instances.
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. Further, imposition of monetary penalty is without prejudice to any
other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/1447 Chief General Manager