Recorded RBI impact
Fine: Rs 75,000
Monetary penalty · Fresh imposition
Published by RBI
12 Dec 2022
Case Brief
By an order dated December 05, 2022, RBI imposed a monetary penalty on Nagrik Sahakari Bank Maryadit, Raigarh, Chhattisgarh for contravention of RBI directions issued to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC). RBI said the bank had not adhered to the prudential inter-bank gross exposure limit, had not complied with the prudential inter-bank counterparty limit, and had not carried out periodic review of risk categorisation of accounts. After considering the bank's replies and oral/additional submissions, RBI concluded the charges were substantiated and warranted the penalty 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. The bank was found to have contravened RBI directions issued to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC), including failure to adhere to prudential inter-bank (gross) exposure limits, prudential inter-bank counterparty limits, and periodic review of risk categorisation of accounts.
Operating Impact
The bank must absorb the monetary penalty; the release does not impose any additional operational restriction or restore/withdraw any prior order. The findings highlight compliance lapses in exposure management and KYC/risk review processes, but do not affect customers directly beyond the regulatory action already taken.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 75,000
- Order Date
- 5 Dec 2022
- Effective From
- 5 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank