Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
20 Mar 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Raisen (Madhya Pradesh) for contravention of and non-compliance with provisions of the Banking Regulation Act, 1949 and directions issued by NABARD on submission of returns by banks. RBI said the bank had delayed submission of statutory returns to RBI and OSS returns to NABARD, based on findings from the inspection report for the bank's financial position as on March 31, 2021. After issuing a show-cause notice and considering the bank's reply and oral submissions, RBI concluded that the charge was substantiated and warranted penalty.
Why RBI Acted
Based on the inspection report for the bank's financial position as on March 31, 2021, RBI found that the bank had delayed submission of statutory returns to RBI and OSS returns to NABARD. This was treated as contravention/non-compliance with the Banking Regulation Act, 1949 and directions issued by NABARD on submission of returns by banks. RBI imposed the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act after considering the bank's reply and oral submissions.
Operating Impact
The bank must bear the ₹50,000 penalty; the release does not impose any additional operational restriction. The issue concerns compliance with regulatory reporting obligations to RBI and NABARD, and does not by itself affect customer operations or transactions.
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
- 15 Mar 2023
- Effective From
- 15 Mar 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank