The Kuppam Co-operative Town Bank Ltd., Kuppam, Andhra Pradesh – Penalised
Case Brief
The Reserve Bank of India penalised The Kuppam Co-operative Town Bank Ltd., Kuppam, Andhra Pradesh, by imposing a monetary penalty of ₹50,000 under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The action followed a show-cause process, the bank’s written reply, and a personal hearing. RBI concluded that the violation of Section 27(2) of the Act was substantiated and warranted penalty.
The Reserve Bank of India imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after concluding that The Kuppam Co-operative Town Bank Ltd. had violated Section 27(2) of the Act. RBI had issued a show-cause notice, considered the bank’s written reply and personal hearing, and found the violations substantiated.
Severity Assessment
A monetary penalty of ₹50,000 falls within the lowest monetary band (up to ₹5 lakh), so severity is 1.
The bank must bear the monetary penalty; no additional operating restriction is described in the release. The action is adverse only in the form of a financial penalty and does not indicate suspension, cancellation, or withdrawal limits.
Published as The Kuppam Co-operative Town Bank Ltd.
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