Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Apr 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Samata Cooperative Development Bank Limited, Kolkata, by order dated March 22, 2022. The penalty was for contravention of RBI directions to urban cooperative banks on Exposure Norms and Statutory/Other Restrictions, after scrutiny showed the bank had exceeded the ceiling on unsecured advances for individual/group borrowers. RBI said the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a show-cause notice, the bank's reply, and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty on Samata Cooperative Development Bank Limited, Kolkata for contravention/non-adherence with directions issued to urban cooperative banks on Exposure Norms and Statutory/Other Restrictions. The scrutiny report for the bank's financial position as on March 31, 2019 found that it had not adhered to the ceiling on unsecured advances for individual/group borrowers (with or without surety). RBI issued a show-cause notice, considered the bank's reply and oral submissions, and concluded that the non-compliance was substantiated under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty, but the release does not describe any new operational restriction or suspension. The underlying compliance issue concerns lending exposure limits for unsecured advances to individual and group borrowers, which is relevant to the bank’s future regulatory compliance.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 22 Mar 2022
- Effective From
- 22 Mar 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank