Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
20 Feb 2018
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1,00,000 on Bedkihal Urban Cooperative Bank Ltd., Bedkihal, Karnataka under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was levied because the bank violated RBI directives/guidelines on exposure norms. RBI issued a show-cause notice, the bank sought a personal hearing, and after considering the bank’s reply and hearing, RBI held the violations substantiated and deserving of penalty.
Why RBI Acted
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 Bedkihal Urban Cooperative Bank Ltd. had violated RBI directives/guidelines on exposure norms. The bank responded to a show-cause notice and sought a personal hearing, but RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not mention any additional operational restriction, but the penalty is a formal regulatory adverse action and may affect supervisory scrutiny. No direct action is stated for customers or counterparties beyond the bank's compliance obligations.
Regulatory Basis
- Section 47 A (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 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank