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Ranga Reddy Co-operative Urban Bank Ltd

Co-operative bankHyderabad, Telangana

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

22 Sept 2017

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Ranga Reddy Co-operative Urban Bank Ltd., Hyderabad, Telangana under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty followed a show-cause notice, the bank’s written reply, and a personal hearing. RBI concluded that the violations of its directives and guidelines on Exposure Norms and Statutory/Other Restrictions for urban co-operative banks were substantiated and warranted the penalty.

Why RBI Acted

Capital & exposure normsReporting & disclosure

RBI imposed a monetary penalty after issuing a show-cause notice, considering the bank’s written reply and personal hearing. The violations were found substantiated, relating to non-compliance with RBI directives and guidelines on Exposure Norms and Statutory/Other Restrictions for urban co-operative banks, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies).

Operating Impact

The bank must absorb the monetary penalty; the release does not impose any additional operational restriction. The forward-looking impact is limited to the financial sanction and the compliance signal to the bank and its management.

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 1.00 L
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank