Recorded RBI impact
Fine: Rs 4,000
Monetary penalty · Fresh imposition
Published by RBI
26 Nov 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty on Krishna Pattana Sahakar Bank Niyamitha, Shahpur, Karnataka under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for non-submission of returns under Section 27(2) of the Act. RBI had issued a show-cause notice, the bank sought a personal hearing, and RBI concluded that the violation was substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after concluding that Krishna Pattana Sahakar Bank Niyamitha, Shahpur had violated the requirement to submit returns under Section 27(2). The bank received a show-cause notice and sought a personal hearing, but RBI held the violation was substantiated and warranted penalty.
Operating Impact
The bank must bear the monetary penalty of Rs 40,000; the release does not indicate any broader restriction on operations. The adverse impact is limited to the fine and the compliance finding related to return submission obligations.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
- Section 27 (2) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 4,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank