Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
28 Oct 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Maa Sharda Mahila Nagrik Sahakari Bank Maryadit, Maihar, Madhya Pradesh, by order dated October 21, 2024. The penalty was imposed after a statutory inspection and show-cause proceedings found non-compliance with RBI directions on ‘Exposure norms & Statutory/ Other Restrictions – UCBs’. RBI specifically noted that the bank had breached the prudential inter-bank gross exposure limit and the prudential inter-bank counterparty exposure limit. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection and show-cause process. RBI found that the bank failed to comply with directions on ‘Exposure norms & Statutory/ Other Restrictions – UCBs’, specifically breaching the prudential inter-bank gross exposure limit and the prudential inter-bank counterparty exposure limit.
Operating Impact
The bank must bear the monetary penalty, and the action serves as a regulatory censure for breach of exposure norms. The release does not impose any additional operating restriction, but RBI notes that further action may still be initiated separately.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 21 Oct 2024
- Effective From
- 21 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank