Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Mar 2014
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Amreli Nagarik Sahakari Bank Ltd, Dist. Amreli (Gujarat), under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The violation related to RBI guidelines on issuance of at-par cheques/pay orders against receipt of cash. RBI said the breach was found in inspection findings for the bank’s financial position as on March 31, 2013, and after a show-cause notice, the bank’s written reply, and personal submission, the regulator concluded that the violation was substantiated and deserved penalty.
Why RBI Acted
RBI imposed a penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after inspection findings for the bank’s financial position as on March 31, 2013 showed violation of RBI guidelines on issuance of at-par cheques/pay orders against receipt of cash. A show-cause notice was issued, the bank replied, and after considering the facts, reply, and personal submission, RBI concluded the violation was substantiated and warranted penalty.
Operating Impact
The bank must absorb the financial penalty; the release does not announce any operational restriction or license action. The adverse impact is limited to the penalty and regulatory censure, with no stated direct effect on depositors or customers beyond compliance expectations.
Regulatory Basis
- Section 47A(1)(b) 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