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Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Gwalior (M.P)

Co-operative bankGwalior, M.P

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 1.50 L

Monetary penalty · Fresh imposition

S1

Published by RBI

19 Sept 2022

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.50 lakh on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Gwalior (M.P) by order dated September 13, 2022. The penalty was levied for contravention of RBI directions issued to urban co-operative banks on Exposure Norms & Statutory/Other Restrictions and Know Your Customer (KYC), under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. RBI said the bank had not complied with the prudential inter-bank gross exposure limit, exceeded the prudential inter-bank counterparty exposure limit, and failed to ensure periodic review of risk categorization of customers. After a show-cause notice, RBI considered the bank's replies and oral submissions and found the charges substantiated, warranting the penalty.

Why RBI Acted

Capital & exposure normsKYC / AMLReporting & disclosure

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 for contravention/non-compliance with directions issued to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions and Know Your Customer (KYC). The Risk Assessment Report for the bank's financial position as on March 31, 2021 found that it had not complied with the prudential inter-bank gross exposure limit, exceeded the prudential inter-bank counterparty exposure limit, and had not ensured periodic review of risk categorization of customers. RBI issued a show-cause notice, considered the bank's replies and oral submissions, and concluded the charges were substantiated.

Operating Impact

The bank must absorb the penalty and ensure future compliance with RBI's exposure norms and KYC requirements. The action does not itself impose a continuing operational restriction, but it signals increased regulatory scrutiny of the bank's lending/exposure management and customer due diligence processes.

Regulatory Basis

  • Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949

Action Facts

Primary Impact
Fine: Rs 1.50 L
Order Date
13 Sept 2022
Effective From
13 Sept 2022
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank