Recorded RBI impact
Fine: Rs 4.00 L
Monetary penalty · Fresh imposition
Published by RBI
7 Oct 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹4 lakh on Bicholim Urban Co-operative Bank Limited, Bicholim, Goa, by order dated October 07, 2021. RBI said the bank had contravened or failed to comply with directions on Exposure Norms and Statutory/Other Restrictions for UCBs, Board of Directors for UCBs, and Know Your Customer (KYC) 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 written reply, oral submissions, and additional submissions.
Why RBI Acted
RBI imposed a monetary penalty after an inspection revealed the bank had failed to comply with RBI directions relating to Exposure Norms and Statutory/Other Restrictions - UCBs, Board of Directors - UCBs, and Know Your Customer (KYC) requirements. 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 the bank’s reply and submissions were considered.
Operating Impact
The bank must absorb the financial penalty; the release does not describe any additional operational restriction or withdrawal of business rights. The action reflects supervisory enforcement for past compliance failures, with no explicit forward-looking cap or ban stated in the release.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 4.00 L
- Order Date
- 7 Oct 2021
- Effective From
- 7 Oct 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank