Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
21 Aug 2023
Case Brief
The RBI imposed a monetary penalty of ₹1.00 lakh on The Dahanu Road Janata Cooperative Bank Ltd., Palghar, Maharashtra. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after RBI found, through statutory inspection and subsequent examination, that the bank had given a donation in violation of specific directions issued under the Supervisory Action Framework (SAF). RBI issued a show-cause notice, reviewed the bank's reply and additional submissions, and heard oral submissions before concluding that the non-compliance was established.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection and review of related reports/correspondence found that the bank had given a donation in violation of specific directions issued under the Supervisory Action Framework (SAF). RBI issued a show-cause notice, considered the bank's reply, additional written submissions and oral submissions at the personal hearing, and concluded that the charge of non-compliance was substantiated. The penalty was imposed 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 penalty; the press release does not indicate any new operational restriction beyond the fine. The action serves as a regulatory compliance warning for the bank and underscores the need to follow RBI directions, especially those issued under SAF.
Regulatory Basis
- Section 47 A (1) (c) read with Sections 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 10 Aug 2023
- Effective From
- 10 Aug 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank