Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
7 Mar 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1,00,000 on Nagar Sahkari Bank Ltd., Etawah (Uttar Pradesh) under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty followed a show-cause notice and consideration of the bank's written reply. RBI concluded that the violations were substantiated, specifically citing breaches of Prudential Norms on Inter-bank Gross Exposure and Counter Party Limit.
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 issuing a show cause notice and considering the bank's written reply. The violations were found substantiated and related to prudential norms on inter-bank gross exposure and counter-party limit.
Operating Impact
The bank must absorb the penalty and the adverse supervisory finding. The action does not impose an ongoing operating restriction, but it signals compliance expectations around exposure limits and counterparty risk management.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank