Case Brief
What Happened
RBI imposed a monetary penalty of ₹5.00 lakh on The Bharat Co-operative Bank Limited, Bengaluru, Karnataka, by order dated November 28, 2022. The penalty was for non-adherence to RBI directions issued under Exposure Norms and Statutory / Other Restrictions applicable to UCBs. RBI said the bank’s investment in commercial paper breached the prudential individual exposure limit of 15% of capital funds, based on inspection findings for the financial positions as on March 31, 2020 and March 31, 2021. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS).