Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
6 Mar 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty on Etawah Urban Co-operative Bank Ltd., Etawah (U.P.) under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty followed violations of RBI instructions/guidelines relating to supervisory instructions issued under Section 36(1) of the Act, area of operation, branch authorization policy, opening/upgradation of extension counters and ATMs, and shifting/splitting/closure of offices. RBI issued a show-cause notice, considered the bank’s written reply and personal hearing, and concluded that the violations were substantiated and warranted penalty.
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) after concluding that the bank had violated RBI instructions/guidelines relating to supervisory instructions issued under Section 36(1) of the Act, area of operation, branch authorization policy, opening/upgradation of extension counters, ATMs, and shifting/splitting/closure of offices. The bank had been issued a show-cause notice, submitted a written reply, and was given a personal hearing before the violations were found substantiated.
Operating Impact
The bank must bear a monetary penalty of Rs 50,000. The action does not itself impose a continuing operational restriction, but it records regulatory non-compliance and may affect supervisory scrutiny of the bank’s branch, ATM, and office-related decisions going forward.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949
- Section 36(1) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank