Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
12 Dec 2022
Case Brief
By an order dated December 06, 2022, RBI imposed a monetary penalty of Rs 50,000 on Jila Sahakari Kendriya Bank Maryadit, Bilaspur (C.G.). The penalty was imposed for contravention of the Banking Regulation Act, 1949 and directions issued by NABARD, based on inspection findings that the bank had delayed submission of statutory/OSS returns to NABARD. RBI stated that the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any transaction or agreement with customers.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The bank's inspection for the financial position as on March 31, 2021 found that it had delayed submission of statutory/OSS returns to NABARD, amounting to contravention/non-compliance with the Act and directions issued by NABARD.
Operating Impact
The bank must absorb the penalty and improve compliance with statutory reporting obligations and NABARD directions. The action does not impose a business restriction, but it signals regulatory scrutiny over future compliance practices.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 6 Dec 2022
- Effective From
- 6 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank