Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
31 Oct 2018
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Dr. Ambedkar Nagrik Sahakari Bank Maryadit, Gwalior, Madhya Pradesh, under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated Section 27 of the Act and restrictions imposed under the Supervisory Action Framework. After issuing a show-cause notice, reviewing the bank’s written reply and granting personal hearing, RBI concluded that the contraventions were substantiated and warranted penal action.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was found to have violated Section 27 of the Act and the restrictions imposed on it under the Supervisory Action Framework. RBI issued a show-cause notice, considered the bank’s written reply and personal hearing, and concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe a new operational ban or cancellation. The adverse impact is limited to the financial penalty and regulatory censure, with the underlying supervisory compliance issues remaining on record.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
- Section 27 of Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank