Recorded RBI impact
Fine: Rs 20,000
Monetary penalty · Fresh imposition
Published by RBI
26 Nov 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹0.20 lakh (₹20,000) on Nesargi Urban Co-operative Bank Limited, Nesargi, in exercise of powers under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The action followed non-submission of returns under Section 27(2) of the Act. RBI had issued a show-cause notice, the bank sought a personal hearing, and after considering the facts and the bank’s representation, RBI concluded that the violation was substantiated and penalty was warranted.
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) because Nesargi Urban Co-operative Bank Limited failed to submit returns required under Section 27(2) of the Act. RBI issued a show-cause notice, the bank sought a personal hearing, and RBI concluded the violation was substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not mention any additional operational restriction. The matter affects only the penalised co-operative bank and has no stated direct impact on customers beyond the compliance finding.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
- Section 27(2) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 20,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank