Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
13 Mar 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on Lucknow University Primary Co-operative Bank Ltd., Lucknow (U.P.) under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The action followed a show-cause process, written reply from the bank, and personal hearing. RBI concluded that violations of RBI Instructions/Guidelines relating to supervisory instructions issued under Section 36(1) of the Banking Regulation Act, 1949 (AACS) were substantiated and warranted 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, based on the show-cause notice, the bank’s written reply and personal hearing, that the violations of RBI Instructions/Guidelines relating to Supervisory Instructions under Section 36(1) of the Banking Regulation Act, 1949 (AACS) were substantiated.
Operating Impact
The bank must absorb the monetary penalty and address the supervisory instruction lapses identified by RBI. The action does not indicate a business restriction or suspension, but it does signal regulatory non-compliance that may affect future supervisory scrutiny.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949
- Section 36(1) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank