Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
12 Jul 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on Noble Co-operative Bank Limited, Noida, Uttar Pradesh. The action was taken under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for violation of RBI instructions/guidelines on classification and reporting of frauds. RBI issued a show cause notice, considered the bank’s written reply and personal hearing, and concluded that the violations were substantiated and warranted penalty.
Why RBI Acted
The Reserve Bank of India 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) after concluding that Noble Co-operative Bank Limited had violated RBI instructions/guidelines on classification and reporting of frauds. The bank had replied to a show cause notice and was given a personal hearing, but RBI found the violations substantiated and fit for penalty.
Operating Impact
The bank must absorb the penalty; the release indicates no additional business restriction or suspension. The forward-looking effect is limited to the monetary penalty itself, with the underlying compliance expectations around fraud classification and reporting remaining relevant for the bank’s future conduct.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank