Recorded RBI impact
Fine: Rs 20,000
Monetary penalty · Fresh imposition
Published by RBI
26 Nov 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹0.20 lakh (Rs 20,000) on Ron Taluka Primary Teachers' Co-operative Credit Bank Limited, Ron, under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank failed to submit returns required under Section 27(2) of the Act. After issuing a show-cause notice and granting a personal hearing, RBI found the violation substantiated and imposed the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) because the bank failed to submit the required returns under Section 27(2) of the Act. The bank received a show-cause notice and sought a personal hearing; after considering the facts and the bank’s representation, RBI concluded the violation was substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty and ensure future compliance with statutory return-filing requirements. There is no indicated operational restriction beyond the fine, but continued non-compliance could expose the bank to further regulatory action.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
- Section 27 (2) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 20,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank