Recorded RBI impact
Fine: Rs 1.50 L
Monetary penalty · Fresh imposition
Published by RBI
12 Dec 2022
Case Brief
By an order dated December 09, 2022, RBI imposed a penalty of ₹1.50 lakh on Patan Nagarik Sahakari Bank Ltd., Patan (Gujarat). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, for contravention of RBI directions on maintenance of statutory reserves (CRR and SLR) by Primary (Urban) Co-operative Banks. RBI said its statutory inspection, with reference to the bank's financial position as on March 31, 2019, found that the bank had not maintained the minimum Cash Reserve Ratio, and the bank's reply and oral submissions did not alter the conclusion that the non-compliance was substantiated.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty was based on the bank's contravention of RBI directions on Maintenance of Statutory Reserves — CRR and SLR, specifically its failure to adhere to the minimum Cash Reserve Ratio requirement revealed during statutory inspection with reference to its financial position as on March 31, 2019.
Operating Impact
The bank must absorb the monetary penalty; the release does not impose any new operating restriction, suspension, or customer-facing prohibition. The action serves as a compliance warning for the bank and similar co-operative banks regarding maintenance of statutory reserves.
Regulatory Basis
- Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.50 L
- Order Date
- 9 Dec 2022
- Effective From
- 9 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank