Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
1 Jul 2016
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Shri Anand Nagari Sahakari Bank Ltd., Chandrapur, Maharashtra. The penalty was imposed under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after RBI found that violations of various norms and RBI instructions were substantiated. The bank had been issued a show-cause notice and had submitted a written reply before the penalty was confirmed.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank had received a show-cause notice, submitted a written reply, and RBI concluded that the violations were substantiated and warranted penalty for breach of various norms and RBI instructions.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe a business restriction or suspension. The action serves as an enforcement penalty for past non-compliance, with no explicit operational deadline or forward-looking cap stated in the release.
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 5.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank