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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹20.00 lakh on Bharati Sahakari Bank Limited, Pune for non-compliance with directions related to frauds monitoring and reporting mechanism. The order was issued on May 24, 2024, under the powers conferred by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The penalty follows RBI’s statutory inspection, with reference to the bank’s financial position as on March 31, 2022, which revealed that the bank delayed reporting a fraud in a current account to the RBI. The bank was issued a show-cause notice, and after reviewing its written and oral submissions, RBI found the charge substantiated, warranting the imposition of penalty.
RBI clarified that this action relates solely to regulatory compliance deficiencies and does not affect the validity of any transactions or agreements between the bank and its customers. The penalty is without prejudice to any further regulatory action that may be initiated against the bank.
[RBI]