Recorded RBI impact
Fine: Rs 12.0 L
Monetary penalty · Fresh imposition
Published by RBI
31 Jan 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹12.00 lakh on Navbharat Co-operative Urban Bank Ltd., Hyderabad. The bank was found to have violated or not complied with RBI directions under the Supervisory Action Framework, the Basic Cybersecurity Framework, and requirements on IS Audit and Internal Audit Compliance. RBI said the penalty followed an inspection report based on the bank's financial position as on March 31, 2019, issuance of a show-cause notice, and consideration of the bank's reply and oral submissions. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS).
Why RBI Acted
RBI imposed a monetary penalty after an inspection (financial position as on March 31, 2019) found the bank had violated or not complied with directions issued under the Supervisory Action Framework, the Basic Cybersecurity Framework, and requirements relating to IS Audit and Internal Audit Compliance. The bank was issued a show-cause notice, and after considering its reply and oral submissions, RBI concluded the charges were substantiated. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS).
Operating Impact
The bank must absorb the penalty and continue operating, but the release signals RBI's adverse finding on past compliance lapses. There is no stated restriction on deposits, lending, or other operations in this order, and no direct customer action is required beyond any ongoing compliance expectations.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 12.0 L
- Order Date
- 25 Jan 2022
- Effective From
- 25 Jan 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank