Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
3 Dec 2018
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2,00,000 on Dilip Urban Co-operative Bank Ltd., Barshi, Solapur (Maharashtra), under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for violation of RBI instructions/guidelines regarding investment and prudential limits on Non-SLR investment. RBI had issued a show-cause notice, considered the bank’s written reply, and concluded that the violations were substantiated and merited 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 (as applicable to co-operative societies) after finding that the bank had violated RBI instructions/guidelines relating to investment and prudential limits on Non-SLR investment. The bank had submitted a written reply to the show-cause notice, but RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the order does not state any business restriction, but it signals regulatory scrutiny over investment practices and prudential compliance. No immediate operational cap is described in the release.
Regulatory Basis
- Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank