Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
2 Sept 2024
Case Brief
RBI, by an order dated August 28, 2024, imposed a monetary penalty of ₹1.00 lakh on Durgapur Mahila Co-operative Bank Limited, Kolkata. The penalty was levied after RBI’s statutory inspection and supervisory review found non-compliance with the Master Circular on Investments by Primary (Urban) Co-operative Banks. RBI sustained charges that the bank breached the prudential inter-bank counterparty limit and the prudential inter-bank (gross) exposure limit, and imposed the penalty under the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after supervisory findings showed non-compliance with the Master Circular on Investments by Primary (Urban) Co-operative Banks. The sustained charges were that the bank breached the prudential inter-bank counterparty limit and the prudential inter-bank (gross) exposure limit.
Operating Impact
The bank must absorb the monetary penalty, but the release does not describe any operational restriction or other forward-looking business curtailment. The action primarily signals regulatory non-compliance and may expose the bank to further supervisory scrutiny or additional action, if RBI deems appropriate.
Regulatory Basis
- section 47A(1)(c)
- sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 28 Aug 2024
- Effective From
- 28 Aug 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank