Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
20 Feb 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Jila Sahakari Kendriya Bank Maryadit, Bhind (Madhya Pradesh) by order dated February 14, 2023. The penalty was for contravention of the Banking Regulation Act, 1949 and NABARD directions on submission of returns, after inspection revealed delays in submitting statutory returns to RBI and OSS returns to NABARD. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and concluded that the non-compliance was substantiated.
Why RBI Acted
RBI imposed a monetary penalty after an inspection found that the bank had delayed submission of statutory returns to RBI and OSS returns to NABARD. RBI held that this amounted to contravention/non-compliance with the Banking Regulation Act, 1949 and directions issued by NABARD on submission of returns by banks, and that the charge was substantiated after considering the bank's reply and oral submissions.
Operating Impact
The bank must bear the penalty and address the compliance lapse in regulatory return submission. No operational restriction is described, but the finding signals continued scrutiny of its statutory reporting and compliance 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 50,000
- Order Date
- 14 Feb 2023
- Effective From
- 14 Feb 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank