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Northern Railway Multi-state Primary Co-operative Bank Ltd., Lucknow

Co-operative bankLucknow

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 1.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

26 Jun 2018

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1,00,000 on Northern Railway Multi-state Primary Co-operative Bank Ltd., Lucknow under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The violation related to opening an on-site ATM without obtaining prior approval from RBI. After a show-cause notice and review of the bank's reply, RBI held the contravention substantiated and imposed the penalty.

Why RBI Acted

Licensing breach

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 the bank opened an on-site ATM without prior approval from RBI. RBI issued a show-cause notice, considered the bank's written reply, and concluded that the violation was substantiated and warranted penalty.

Operating Impact

The bank must bear the financial penalty, and the action serves as an enforcement signal regarding compliance with RBI approval requirements for on-site ATM openings. No explicit operational restriction or suspension was imposed in this release.

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