Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
29 Jan 2024
Case Brief
RBI, by order dated January 08, 2024, imposed a monetary penalty of Rs 50,000 on Mula Sahakari Bank Ltd., Sonai, Dist. Ahmednagar, Maharashtra. The penalty was imposed for non-compliance with RBI directions on 'Exposure Norms and Statutory/Other Restrictions - UCBs'. RBI's inspection, based on the bank's financial position as on March 31, 2022, found that the bank had breached the inter-bank counterparty exposure limit. After considering the bank's reply and oral submissions, RBI held the charge substantiated and imposed the penalty under 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 statutory inspection and review of the Risk Assessment Report/correspondence found that the bank had breached the inter-bank counterparty exposure limit. RBI concluded the charge of non-compliance with its directions on 'Exposure Norms and Statutory/Other Restrictions - UCBs' was substantiated.
Operating Impact
The bank must absorb the monetary penalty and continue complying with RBI exposure norms, especially inter-bank counterparty limits. The order does not state any operational restriction on customers or business, but it serves as a compliance warning for future regulatory scrutiny.
Regulatory Basis
- section 47A(1)(c)
- sections 46(4)(i)
- section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 8 Jan 2024
- Effective From
- 8 Jan 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank