Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
24 Dec 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Dattatraya Maharaj Kalambe Jaoli Sahakari Bank Ltd., Mumbai, by order dated December 20, 2021. RBI said the bank contravened directions on Exposure Norms and Statutory/Other Restrictions applicable to UCBs, and specifically failed to adhere to the ceiling on advances to nominal members in certain cases. The penalty was levied 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 documentary evidence.
Why RBI Acted
RBI imposed a monetary penalty after inspection findings showed that the bank had not adhered to its directions on Exposure Norms and Statutory/Other Restrictions applicable to UCBs. The specific lapse noted was non-compliance with the ceiling on advances to nominal members in certain cases. 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, oral submissions, and additional evidence were considered.
Operating Impact
The bank must bear the financial penalty; the release does not indicate any suspension, restriction on operations, or other ongoing supervisory action. Customers and counterparties are not said to face any direct operational change, and RBI expressly notes that the penalty is not a pronouncement on the validity of the bank’s transactions or agreements.
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 1.00 L
- Order Date
- 20 Dec 2021
- Effective From
- 20 Dec 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank