Recorded RBI impact
Fine: Rs 1.50 L
Monetary penalty · Fresh imposition
Published by RBI
16 Dec 2021
Case Brief
The Reserve Bank of India imposed a penalty on Mahila Nagrik Sahakari Bank Maryadit, Mahasamund, Chhattisgarh for contravention of RBI directions on Exposure Norms & Statutory/ Other Restrictions for Urban Co-operative Banks. Inspection revealed breaches of the prudential inter-bank (Gross) exposure limit and the prudential inter-bank counterparty limit. RBI concluded the violations were substantiated and levied a monetary penalty of Rs 1.50 lakh under the Banking Regulation Act, 1949.
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 inspection showed the bank had not adhered to the prudential inter-bank (Gross) exposure limit and had also not complied with the prudential inter-bank counterparty limit under RBI directions applicable to Urban Co-operative Banks.
Operating Impact
The bank must absorb the monetary penalty and continue complying with RBI exposure norms and related prudential restrictions. There is no indicated withdrawal of business rights, but the bank remains subject to the same regulatory requirements going forward.
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 1.50 L
- Order Date
- 15 Dec 2021
- Effective From
- 15 Dec 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank