Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
14 Mar 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on The Amravati Merchants’ Co-operative Bank Ltd., Amravati, by order dated March 11, 2022. RBI said the bank had contravened directions issued to Urban Co-operative Banks on Frauds – Classification and Reporting by delaying the reporting of a fraud. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI considered the bank's replies and oral submissions and found the charge substantiated.
Why RBI Acted
RBI imposed a monetary penalty after an inspection found that the bank had delayed reporting of fraud, constituting contravention/non-compliance with RBI's directions to Urban Co-operative Banks on Frauds – Classification and Reporting. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI concluded the charge was substantiated following the bank's reply and oral submissions.
Operating Impact
The bank must bear the penalty; the release does not impose any new operational restriction beyond the monetary fine. The finding serves as a regulatory compliance signal for the bank's fraud reporting controls, but the release states it is not intended to pronounce on the validity of any transaction or agreement with customers.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 11 Mar 2022
- Effective From
- 11 Mar 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank