Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
23 Mar 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Nagpur Mahanagarpalika Karmachari Sahakari Bank Ltd., Nagpur. RBI said the bank had contravened or failed to comply with its directions on "Exposure Norms and Statutory/Other Restrictions - UCBs", as revealed in an inspection report based on the bank’s financial position as on March 31, 2019. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after a show-cause notice and consideration of the bank’s reply.
Why RBI Acted
Based on the inspection report of the bank as on March 31, 2019, RBI found contravention of / non-compliance with its directions on "Exposure Norms and Statutory/Other Restrictions - UCBs". After issuing a show-cause notice and considering the bank's reply, 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.
Operating Impact
The bank must absorb the monetary penalty and address the compliance lapses identified by RBI. The action does not itself impose a business restriction, but it signals regulatory findings on exposure-limit compliance and may prompt closer supervisory scrutiny.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 23 Mar 2021
- Effective From
- 23 Mar 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank