Recorded RBI impact
Fine: Rs 5,000
Monetary penalty · Fresh imposition
Published by RBI
28 Dec 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5,000 on Sree Chaitanya Co-operative Bank Limited, Nabadwip, West Bengal. RBI said the bank had failed to obtain membership of any of the four Credit Information Companies, in breach of its directions on CIC membership. The action was taken under Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005, after statutory inspection, a show-cause notice, and consideration of the bank’s response and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection found that the bank had not obtained membership of any of the four CICs, contrary to RBI directions on ‘Membership of Credit Information Companies (CICs)’. The penalty was levied under Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005, following show-cause proceedings and consideration of the bank’s reply and oral submissions.
Operating Impact
The bank must bear the penalty and remain compliant with RBI’s directions on membership of Credit Information Companies. The release does not indicate any restriction on business operations beyond the monetary penalty, but it underscores an ongoing compliance obligation.
Regulatory Basis
- Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005 (CIC Act)
Action Facts
- Primary Impact
- Fine: Rs 5,000
- Order Date
- 30 Nov 2023
- Effective From
- 30 Nov 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank