Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
30 Nov 2023
Case Brief
By an order dated November 07, 2023, RBI imposed a monetary penalty of ₹50,000 on The Balasore Bhadrak Central Co-operative Bank Ltd., Balasore, for non-compliance with RBI directions on 'Membership of Credit Information Companies (CICs)'. The action followed a NABARD statutory inspection that found the bank had failed to upload credit information to CICs. RBI issued a show-cause notice, considered the bank’s reply, additional submissions, and oral hearing, and then concluded that the violation was substantiated, warranting the penalty under section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
Why RBI Acted
NABARD’s statutory inspection found that the bank had failed to upload credit information to Credit Information Companies, amounting to non-compliance with RBI’s directions on 'Membership of Credit Information Companies (CICs)'. After a show-cause notice, the bank’s reply, additional submissions, and oral hearing, RBI concluded the charge was substantiated and imposed a monetary penalty under section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
Operating Impact
The bank must absorb the monetary penalty and address the compliance gap identified by RBI. Going forward, it is expected to ensure timely upload of credit information to CICs and maintain compliance with RBI directions; the direct impact is on the bank’s regulatory standing rather than on depositor operations.
Regulatory Basis
- section 25 (1) (iii) read with section 23 (4) of the Credit Information Companies (Regulation) Act, 2005
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 7 Nov 2023
- Effective From
- 7 Nov 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank