Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
16 Apr 2024
Case Brief
RBI, by order dated March 30, 2024, imposed a monetary penalty of ₹3.00 lakh on Omkar Nagreeya Sahkari Bank Ltd., Kanpur. The action followed a statutory inspection with reference to the bank's financial position as on March 31, 2022. RBI found that the bank had failed to comply with directions issued under the Supervisory Action Framework for Primary (Urban) Co-operative Banks, specifically by offering higher interest rates on term and savings deposits than those offered by State Bank of India, contrary to RBI instructions. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection found non-compliance with directions issued under the Supervisory Action Framework (SAF) for Primary (Urban) Co-operative Banks. The sustained charge was that the bank offered higher interest rates on term and savings deposits than those offered by State Bank of India, in contravention of specific instructions issued under SAF. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty, and the finding may inform any further supervisory or enforcement action RBI may choose to initiate. There is no stated restriction on operations or customer access in this release, but the bank has been formally censured for supervisory non-compliance.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 3.00 L
- Order Date
- 30 Mar 2024
- Effective From
- 30 Mar 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank