Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
14 May 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on Jampeta Co-operative Town Bank Ltd., Jampeta, Rajamahendravaram, Andhra Pradesh. The penalty was levied under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), after RBI concluded that the bank had violated its directives/instructions/guidelines concerning the exchange and acceptance of Specified Bank Notes (SBNs). RBI noted that it had issued a show-cause notice, considered the bank’s written reply and provided a personal hearing before deciding that the violations were substantiated.
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 finding that the bank had violated RBI directives/instructions/guidelines relating to the exchange and acceptance of Specified Bank Notes (SBNs). The bank replied to a show-cause notice and was given a personal hearing before the violations were found to be substantiated.
Operating Impact
The bank must absorb the financial penalty and remains subject to RBI compliance expectations. The action does not describe any operational restriction, but it signals regulatory non-compliance in handling Specified Bank Notes.
Regulatory Basis
- Section 47A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- Co-operative bank