Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
3 Oct 2013
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Prime Co-operative Bank Ltd., Surat (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated various instructions relating to issuance of Demand Draft/Pay Order during April 1, 2010 to March 31, 2013. After considering the bank’s written reply and personal submissions to the show-cause notice, RBI concluded that the violation was substantiated and imposed the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after finding that Prime Co-operative Bank Ltd., Surat (Gujarat) had violated various RBI instructions relating to issuance of Demand Draft/Pay Order during the period April 1, 2010 to March 31, 2013. The bank received a show-cause notice, submitted a written reply and made personal submissions, but 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 restrictions. The action is backward-looking, but it signals RBI’s finding of non-compliance with instructions on demand draft/pay order issuance.
Regulatory Basis
- Section 47A (1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank