Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
24 Jan 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Jodhpur Nagrik Sahakari Bank Ltd., Jodhpur by order dated January 20, 2022. The penalty was levied for non-compliance with RBI directions contained in the Master Circular on Exposure Norms and Statutory/Other Restrictions for UCBs, specifically for non-adherence to the prudential inter-bank (gross) exposure limit. RBI said the action was based on deficiencies in regulatory compliance and was not a judgment on the validity of the bank's transactions 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, after an inspection based on the bank's financial position as on March 31, 2020 found non-adherence with the prudential inter-bank (gross) exposure limit. The bank was issued a show-cause notice, and after considering its reply, oral hearing submissions, and additional written submissions, RBI concluded the violation of the relevant directions was substantiated and warranted penalty.
Operating Impact
The bank must absorb the penalty and continue operating subject to RBI's exposure-norm requirements. The action does not by itself restrict customer operations, but it reinforces compliance obligations around inter-bank exposure limits and related prudential controls.
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 1.00 L
- Order Date
- 20 Jan 2022
- Effective From
- 20 Jan 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank