Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
14 May 2015
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Tenali Co-operative Urban Bank Ltd., Tenali, Andhra Pradesh 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 relating to publication and submission of the balance sheet, profit & loss account, and auditor’s report for the year 2013-14. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violations were substantiated and warranted penalty.
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), after finding that Tenali Co-operative Urban Bank Ltd. had violated provisions relating to publication and submission of its balance sheet, profit & loss account, and auditor’s report for the year 2013-14. The bank had submitted a written reply to the show-cause notice, but RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must bear the monetary penalty of ₹1 lakh; the release does not indicate any operational restriction beyond the fine. No direct forward-looking restriction on customers is stated, but the action signals regulatory non-compliance in financial reporting and disclosure.
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