Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Jul 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Dhakuria Cooperative Bank Limited, Kolkata, West Bengal. RBI said the bank had failed to adhere to directions on 'Exposure Norms and Statutory / Other Restrictions – UCBs' and Know Your Customer (KYC) directions. 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 an inspection of the bank's position as of March 31, 2020 found non-compliance and a notice-to-show-cause process concluded that the charges were substantiated.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 after an inspection found violations/non-compliance with directions issued to urban cooperative banks on 'Exposure Norms and Statutory/Other Restrictions – UCBs' and Know Your Customer (KYC) guidelines/directions. RBI stated the penalty was based on deficiencies in regulatory compliance and followed a show-cause notice and consideration of the bank's reply and additional submissions.
Operating Impact
The bank must absorb the penalty and remain compliant with RBI directions going forward, especially on exposure norms and KYC. No customer-facing operational restriction is described in this release, but the bank is expected to correct the regulatory lapses identified by RBI.
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 2.00 L
- Order Date
- 29 Jun 2022
- Effective From
- 29 Jun 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank