Prior permission of RBI is required for shifting a bank branch from one location to another location, even with the same city/town.
Urban Banks are governed by circular UBD No.RBL.77/J(Shifting)-85-86 dated February 12, 1986 read with para 5.1.2 of the Master Circular No.14/07.01.00/2010-11 dated July 01, 2010 on the branch shifting norms.
As Karad Urban Co-operative Bank Ltd., Karad has violated the above RBI norms, a monetary penalty of Rs5.00 lakh (Rupees five lakh only) has been imposed on it, by RBI.
Karad Urban Bank, was founded way back in 1917, and at present has 48 branches. All the branches are on CBS, with Internet banking also enabled. It started off as a Co-op Urban Credit Society and converted into a Co-operative Bank in 1987.
Karad is also known as the sugar bowl of Maharashtra, as many sugar factories are located in and around Karad.
Karad is part of the Satara Dist, Maharashtra. However, the number of educational institutes in Karad are more than Satara.