Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
6 May 2025
Case Brief
By an order dated May 02, 2025, RBI imposed a monetary penalty of Rs 50,000 on Siddheshwar Urban Co-operative Bank Maryadit, Sillod, Aurangabad, Maharashtra. The action followed a supervisory inspection and subsequent show-cause proceedings, which found non-compliance with RBI directions on placement of deposits with other banks by primary urban co-operative banks. RBI specifically noted that the bank had breached the prudential inter-bank (gross) exposure limit. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act after its supervisory inspection found that the bank had not complied with RBI directions on 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)'. The sustained charge was that the bank breached the prudential inter-bank (gross) exposure limit.
Operating Impact
The bank must absorb the monetary penalty and address the compliance gap identified by RBI, specifically its inter-bank exposure controls under the applicable deposit-placement directions. The order does not describe any business restriction or suspension, but RBI may initiate further action if warranted.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 2 May 2025
- Effective From
- 2 May 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank