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The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 57.75 lakh on Suryoday Small Finance Bank (the bank) for non-compliance with the ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016’ issued by RBI.

This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949. This action is based on the 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.

Suryoday Small Finance Bank commenced its microfinance operations in 2009 and has since expanded its operations across several states and union territories.