Recorded RBI impact
Fine: Rs 75,000
Monetary penalty · Fresh imposition
Published by RBI
21 Mar 2024
Case Brief
RBI, by order dated February 27, 2024, imposed a monetary penalty of Rs 75,000 on Jila Sahakari Kendriya Bank Maryadit, Sehore, Madhya Pradesh. The penalty followed a statutory inspection by NABARD and a show-cause process. RBI found that the bank had delayed submission of statutory returns and Off-site Surveillance System (OSS) returns to RBI and NABARD, amounting to non-compliance with section 27 read with section 56 of the Banking Regulation Act, 1949, and imposed the penalty under section 47A(1)(c) read with section 46(4)(i) and section 56 of the Act.
Why RBI Acted
Following a statutory inspection by NABARD with reference to the bank's financial position as on March 31, 2022, RBI issued a show-cause notice based on supervisory findings of non-compliance with statutory provisions and directions. After considering the bank's reply and submissions, RBI sustained the charge that the bank delayed submission of statutory returns and OSS returns to RBI and NABARD respectively, constituting contravention of section 27 read with section 56 of the BR Act, 1949, and imposed a monetary penalty under section 47A(1)(c) read with section 46(4)(i) and section 56 of the Act.
Operating Impact
The bank must absorb the monetary penalty, and the finding may be considered in any future supervisory or enforcement action. The release states the penalty is without prejudice to any other action RBI may initiate.
Regulatory Basis
- section 27 read with section 56 of the Banking Regulation Act, 1949
- section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 75,000
- Order Date
- 27 Feb 2024
- Effective From
- 27 Feb 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank