Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
5 Oct 2018
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Ananthapuramu Co-operative Urban Bank Ltd., Ananthapuramu, Andhra Pradesh under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was penalised for violating RBI directives/instructions/guidelines on exposure norms and statutory/other restrictions applicable to urban co-operative banks. RBI said it had issued a show cause notice, considered the bank's written reply and personal hearing, and concluded that the violations were substantiated.
Why RBI Acted
RBI imposed a monetary penalty after issuing a show cause notice, considering the bank's written reply and personal hearing. The violations were found substantiated under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), for breach of directives/instructions/guidelines on Exposure Norms and Statutory/Other Restrictions applicable to UCBs.
Operating Impact
The bank must absorb the monetary penalty of Rs 50,000; the release does not describe any additional restriction on operations. The action is backward-looking and affects only the penalised bank, with no stated direct impact on customers beyond the penalty itself.
Regulatory Basis
- Section 47A (1) (c) read with Section 46 (4) of The Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank