RBI Imposes Rs1.50 Lakh Penalty on Vaidyanath Urban Co-Operative Bank for Not Following SAF
Moneylife Digital Team 14 February 2023
Reserve Bank of India (RBI) has imposed a fine of Rs 1.50 lakh on Vaidyanath Urban Co-Operative bank located at Parli Vaijnath in Maharashtra. The penalty was imposed after an inspection by RBI found that the bank violated the operational instructions issued under the supervisory action framework (SAF)
The inspection report of the bank based on its financial position as on 31 March 2021 revealed that the bank made donations violating the operational instructions prescribed by RBI under SAF. 
A notice was issued to the bank advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions. After the perusal of records and hearing, RBI imposed the monetary penalty after it concluded that the bank violated the regulations and operational instructions.
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