Case Brief
What Happened
RBI, by order dated October 01, 2024, imposed a monetary penalty of ₹5.00 lakh on The Parwanoo Urban Co-operative Bank Limited, Parwanoo, Himachal Pradesh. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection conducted with reference to the bank’s financial position as on March 31, 2023. RBI said supervisory findings showed non-compliance with its instructions issued under the Supervisory Action Framework (SAF), and after issuing a show-cause notice and considering the bank’s reply and oral submissions, it sustained the charge that dividend was paid in violation of the directions. RBI clarified that the penalty is based on deficiencies in regulatory compliance and is without prejudice to any other action that may be initiated.