Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Dec 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty on Saraspur Nagrik Co-operative Bank Ltd., Ahmedabad (Gujarat) for contravention of RBI directions on maintenance of statutory reserves, specifically the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) applicable to primary (urban) co-operative banks. RBI’s inspection, with reference to the bank’s financial position as on March 31, 2019, found that the bank had not maintained the minimum CRR. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI held the non-compliance substantiated and levied a penalty of ₹2.00 lakh.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The statutory inspection found that Saraspur Nagrik Co-operative Bank Ltd. had not maintained the minimum Cash Reserve Ratio (CRR), which amounted to contravention of RBI directions on Maintenance of Statutory Reserves – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) by Primary (Urban) Co-operative Banks. After show-cause notice, reply, and oral submissions, RBI concluded the charge was substantiated and imposed the penalty.
Operating Impact
The bank must absorb the financial penalty; the release does not announce any operating restriction or suspension. The immediate impact is limited to the monetary penalty, while the underlying compliance lapse concerns statutory reserve maintenance requirements under RBI directions.
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 2.00 L
- Order Date
- 16 Dec 2022
- Effective From
- 16 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank