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510 Army Base Workshop Credit Co-operative Primary Bank Ltd., Meerut Cantt

Co-operative bankMeerut Cantt.

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 5.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

6 Jun 2018

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5,00,000 on 510 Army Base Workshop Credit Co-operative Primary Bank Ltd., Meerut Cantt. The action was taken under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had violated instructions and guidelines relating to timely submission of proper compliance, prudential norms on inter-bank gross exposure and counter party limit, membership of Credit Information Companies, audit of the investment portfolio, and Depositor Education and Awareness Fund requirements. After issuing a show cause notice and considering the bank’s written reply, RBI held the violations to be substantiated and imposed the penalty.

Why RBI Acted

Reporting & disclosureCapital & exposure normsLicensing breachOther

RBI 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 finding that the bank had violated RBI instructions/guidelines on submission of proper compliance on time, prudential norms on inter-bank gross exposure and counter party limit, obtaining membership of Credit Information Companies (CICs), carrying out audit of investment portfolio, and Depositor Education and Awareness Fund requirements. The bank had received a show cause notice and submitted a written reply, but RBI concluded that the violations were substantiated and warranted penalty.

Operating Impact

The bank must absorb the monetary penalty; the release does not describe any operational restriction, suspension, or cancellation. The action signals regulatory non-compliance findings against the bank, but no direct forward-looking business limitation is imposed by this order.

Regulatory Basis

  • Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

Action Facts

Primary Impact
Fine: Rs 5.00 L
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank