Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Jul 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Balangir District Central Cooperative Bank Limited, Balangir, Odisha. RBI said the bank contravened Section 9 of the Banking Regulation Act, 1949 and did not adhere to RBI directions regarding disposal of non-banking assets. The penalty was imposed after inspection findings showed violations/non-compliance, and after the bank's reply and additional submissions were considered under the statutory powers cited.
Why RBI Acted
RBI imposed a monetary penalty after finding that the bank had violated / not complied with directions issued on disposal of non-banking assets. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, following inspection findings and a show-cause process.
Operating Impact
The bank must absorb the penalty and is on notice to comply with RBI's directions on disposal of non-banking assets. The release does not describe a business restriction, but it signals ongoing regulatory scrutiny of the bank's compliance controls.
Regulatory Basis
- Section 9 of the Banking Regulation Act, 1949
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 29 Jun 2022
- Effective From
- 29 Jun 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank