Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Dec 2022
Case Brief
By order dated December 12, 2022, RBI imposed a monetary penalty of ₹1.00 lakh on Nagarik Sahakari Bank Ltd., Babra, district Amreli (Gujarat). The penalty was imposed for contravention of RBI directions on maintenance of Statutory Reserves, specifically the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements applicable to primary (urban) co-operative banks. RBI said a statutory inspection with reference to the bank's financial position as on March 31, 2018 found that the bank had not maintained the minimum SLR. After a show-cause notice, the bank's reply and oral submissions were considered, and RBI concluded the charge was substantiated.
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 found that the bank had not maintained the minimum Statutory Liquidity Ratio (SLR). The lapse amounted to contravention of RBI directions on Maintenance of Statutory Reserves – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) by Primary (Urban) Co-operative Banks.
Operating Impact
The bank must absorb the ₹1 lakh penalty; the order does not state any additional operational restriction. The finding remains a compliance record issue and signals continued expectations to maintain prescribed CRR/SLR levels going forward.
Regulatory Basis
- Section 47 A (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
- 12 Dec 2022
- Effective From
- 12 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank