Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
6 Mar 2025
Case Brief
By an order dated March 03, 2025, RBI imposed a monetary penalty of ₹50,000 on The A.P. Raja Rajeswari Mahila Co-operative Urban Bank Ltd., Hyderabad. The penalty followed a statutory inspection and subsequent show-cause proceedings, after RBI found that the bank had sanctioned gold loans under the bullet repayment scheme beyond the prescribed regulatory limit, contrary to directions on ‘Management of Advances – UCBs’. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection found non-compliance with directions on ‘Management of Advances – UCBs’. The sustained charge was that the bank sanctioned gold loans under the bullet repayment scheme beyond the prescribed regulatory limit. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must bear the financial penalty; the release does not impose any new operational restriction or licence action. The finding signals a compliance lapse in lending norms, but RBI notes the penalty is without prejudice to any other action it may initiate separately.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 3 Mar 2025
- Effective From
- 3 Mar 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank