Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
31 Oct 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on Banda Urban Co-operative Bank Ltd., Banda, U.P. The penalty was levied for contravention of RBI directions on “Exposure Norms and Statutory / Other Restrictions – UCBs,” specifically for failure to comply with prudential inter-bank (gross) exposure norms. RBI stated that the action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after an inspection based on the bank’s financial position as on March 31, 2021 and after considering the bank’s reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty after an inspection for the bank’s financial position as on March 31, 2021 found non-compliance with prudential inter-bank (gross) exposure norms. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.
Operating Impact
The bank must absorb the monetary penalty; no additional restriction on operations is described in this release. The action serves as a compliance signal for the bank and other cooperative banks regarding adherence to exposure norms.
Regulatory Basis
- Section 47A(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
- 27 Oct 2022
- Effective From
- 27 Oct 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank