RBI has imposed a monetary penalty on Small Finance Bank

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The Reserve Bank of India (RBI) on Friday imposed a monetary penalty of Rs 57.75 lakh on Suryoday Small Finance Bank for non-compliance.

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The RBI said the action is based on regulatory deficiencies and is not intended to validate any transaction or agreement entered into by the bank with its customers.

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before sanction, RBI had conducted a review of the bank regarding its financial position on March 31, 2019 and scrutiny of the Inspection Report (IR) and all related correspondence.

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During an RBI inspection, it found non-compliance with its guidelines 1. furnish FMR to RBI, with respect to certain cases of fraud, within three weeks of their date of detection

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2. refer to State Police authorities certain cases of fraud committed by its staff. RBI has issued a notice to the bank advising show cause why it should not be penalized.

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On BSE, shares of SFB closed at ₹80 apiece, up 1.3%. It is a small cap in the banking space with a current market cap of ₹849.27 crore.

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On Friday, the bank said it will consider and approve the bank's unaudited financial results for the quarter ended June 30, 2022 (Q1FY23) on August 4.

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Suryoday Small Finance Bank is a new age bank that came into life on 23rd January 2017. It is one of the 10 companies and the only one from Maharashtra to get a 'Small Finance Bank' license from RBI.

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Currently, it has an over 1.4 million customer base.

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