Recorded RBI impact
Fine: Rs 75,000
Monetary penalty · Fresh imposition
Published by RBI
13 Jun 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹75,000 on Ramanagaram Urban Co-operative Bank Limited, Karnataka. RBI said the action followed a statutory inspection and supervisory findings of non-compliance with its directions on ‘Exposure Norms & Statutory/Other Restrictions-UCBs’. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI sustained the charge of non-adherence to prudential inter-bank (Gross) and counter-party exposure limits. 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 supervisory non-compliance with RBI directions. The bank’s reply and oral submissions were considered, but the charge of non-adherence to prudential inter-bank (Gross) and counter-party exposure limit was sustained. 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 bear the monetary penalty, and the order serves as a regulatory censure for breach of exposure norms. The release does not impose any new operating restriction on depositors or customers, but RBI notes that further action may still be initiated separately.
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 75,000
- Order Date
- 11 Jun 2024
- Effective From
- 11 Jun 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank