Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 May 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Chopda People's Co-operative Bank Ltd., Jalgaon, Maharashtra under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated Section 5(ccv) of the Act and an RBI directive on unsecured advances. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violations were substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The bank was found to have violated Section 5(ccv) of the Act and an RBI directive on unsecured advances; its written reply to the show-cause notice was considered but the violations were held substantiated.
Operating Impact
The bank must absorb the financial penalty of Rs 1 lakh; no separate operational restriction is described in this release. The action is primarily a compliance sanction reflecting RBI’s findings on unsecured advances and statutory non-compliance.
Regulatory Basis
- Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)
- Section 5 (ccv) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank