Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
30 Mar 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Akhand Anand Co-operative Bank Ltd., Surat (Gujarat), by order dated March 26, 2021. RBI said the bank had contravened directions on loans and advances to directors and related concerns, CRR/SLR maintenance for primary urban co-operative banks, and declaration of dividend by UCBs. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after inspections and a show-cause process confirmed the non-compliance.
Why RBI Acted
Statutory inspections of the bank for its financial position as on March 31, 2018 and March 31, 2019 found contravention of RBI directions relating to loans and advances to directors/related parties and guarantees, maintenance of statutory reserves (CRR and SLR) by primary urban co-operative banks, and declaration of dividend by UCBs. After a show-cause process and hearing, RBI concluded the charges were substantiated and imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe any additional operating restriction or licence action. The consequence is a financial sanction for past compliance failures, with no explicit forward-looking curbs on deposits, lending, or other operations stated in the release.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 26 Mar 2021
- Effective From
- 26 Mar 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank