Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
20 Feb 2014
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Amravati Zilla Mahila Sahakari Bank Ltd., Amravati 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 its guidelines on diversion of funds. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded the violation was substantiated and that penalty was warranted.
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 the bank had violated RBI guidelines on diversion of funds. The bank had submitted a written reply to the show-cause notice, but RBI concluded the violation was substantiated and warranted a penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe any operational restriction beyond the fine. The finding may also affect supervisory scrutiny, but there is no stated direct impact on depositors or customers in this release.
Regulatory Basis
- Section 47A (1) (b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank