Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
14 Jul 2016
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Shri Laxmi Co-operative Bank Ltd., Pune under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated provisions of the Act by submitting false compliance to RBI Inspection Report 2012-2013. After issuing a show-cause notice and considering the bank's written and oral submissions, RBI concluded that the violations were substantiated and penalty was warranted.
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) because Shri Laxmi Co-operative Bank Ltd., Pune was found to have violated provisions of the Act by submitting false compliance to RBI Inspection Report 2012-2013. RBI issued a show-cause notice, considered the bank's written and oral submissions, and concluded that the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not announce any operating restriction, license action, or customer-facing limitation. The action is backward-looking and primarily affects the bank, not depositors or borrowers directly.
Regulatory Basis
- Section 47A(1)(b)
- Section 46(4)
- Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank