**Executive Summary**
RBI has imposed a monetary penalty of ₹2 lakh on The Satara Sahakari Bank Ltd., Mumbai, for non-compliance with certain directions on prudential norms and exposure limits. The order, dated October 23, 2025, is based on a statutory inspection as of March 31, 2024. The penalty is imposed under provisions of the Banking Regulation Act, 1949.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹2 lakh on The Satara Sahakari Bank Ltd.
* The penalty is for non-compliance with RBI directions on prudential norms and exposure limits for Urban Co-operative Banks (UCBs).
* **Reasons for Penalty:**
* The bank refunded share capital despite its Capital to Risk Weighted Assets Ratio (CRAR) being below the regulatory minimum.
* The bank breached prudential single borrower exposure limit in certain instances.
* **Inspection and Legal Basis:**
* The statutory inspection of the bank was conducted with reference to its financial position as on March 31, 2024.
* The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Clarifications:**
* The action is based on deficiencies in regulatory compliance and does not pronounce the validity of transactions with customers.
* The monetary penalty does not prejudice any other action that RBI may initiate against the bank.
**Impact Analysis**
**The Satara Sahakari Bank Ltd.**
* **Impact**
* Financial: faces a monetary penalty of ₹2 lakh.
* Reputational: Possible reputation damage due to non-compliance.
* **Action Required**
* The bank needs to pay the penalty imposed by the RBI.
* The bank needs to improve its regulatory compliance to avoid future penalties.
**RBI**
* **Impact**
* Demonstrates its regulatory oversight.
* Reinforces compliance among other cooperative banks.
* **Action Required**
* Continue to monitor The Satara Sahakari Bank Ltd's compliance.
* Reserve the right to initiate further action against the bank if necessary.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
Banking Regulation Act, 1949: The act under which the RBI exercised its powers.
The Satara Sahakari Bank Ltd.: The entity on which the monetary penalty was imposed.
Prudential Norms on Capital Adequacy – Primary (Urban) Co-operative Banks (UCBs): RBI directions related to Capital Adequacy.
Mumbai, Maharashtra: Location of The Satara Sahakari Bank Ltd.
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RESERVE BANK OF INDIA
वेबसाइट
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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