Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
10 Dec 2010
Case Brief
The Reserve Bank of India penalised Sampada Sahakari Bank Ltd., Pune, Maharashtra under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949. RBI said the bank had violated its directive under section 41 of the RBI Act, 1934 and several provisions of the Banking Regulation Act, 1949 (AACS) read with the Banking Regulation (Co-operative Societies) Rules, 1966, because it failed to submit various returns. After a show cause notice and the bank’s written reply, RBI concluded the contraventions were established and imposed a penalty of Rs 50,000.
Why RBI Acted
RBI imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 on Sampada Sahakari Bank Ltd., Pune, Maharashtra. The bank was found to have violated RBI's directive under section 41 of the RBI Act, 1934 and multiple provisions of the Banking Regulation Act, 1949 (AACS) read with Rules 3, 5, 8 and 9 of the Banking Regulation (Co-operative Societies) Rules, 1966, specifically for non-submission of various returns. RBI issued a show cause notice, considered the bank's written reply, and concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must bear the monetary penalty; the release does not mention any operational restriction or licence action. The adverse impact is limited to the financial penalty and regulatory non-compliance record.
Regulatory Basis
- Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949
- Section 41 of RBI Act, 1934
- Section 18, 19, 20, 23, 24, 26, 27, 29 and 31 of Banking Regulation Act, 1949 (AACS) read with Rule 3, 5, 8 and 9 of Banking Regulation (Co-operative Societies) Rules, 1966
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank