Recorded RBI impact
Fine: Rs 20.0 L
Monetary penalty · Fresh imposition
Published by RBI
27 May 2024
Case Brief
By an order dated May 24, 2024, RBI imposed a monetary penalty of ₹20.00 lakh on Bharati Sahakari Bank Limited, Pune. The penalty was imposed because the bank failed to comply with certain RBI directions on frauds monitoring and reporting mechanism; specifically, RBI found that the bank had delayed reporting a fraud in a current account to RBI. The action followed a statutory inspection, a show-cause notice, and consideration of the bank’s reply and oral submissions, and was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty of ₹20.00 lakh on Bharati Sahakari Bank Limited, Pune for non-compliance with certain RBI directions on ‘Frauds monitoring and reporting mechanism’. RBI found that the bank had delayed reporting a fraud in a current account to RBI, after a statutory inspection and subsequent show-cause process 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 financial penalty and the finding of regulatory non-compliance. The order does not invalidate any customer transaction, but it may increase supervisory scrutiny and expose the bank to further RBI action if similar lapses recur.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 20.0 L
- Order Date
- 24 May 2024
- Effective From
- 24 May 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank