Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
26 Jul 2021
Case Brief
RBI imposed a monetary penalty of ₹1.00 lakh on The Balasore Cooperative Urban Bank Limited, Balasore, Odisha, by order dated July 23, 2021. The penalty was levied for contravention of RBI's Master Circular on 'Exposure Norms and Statutory/Other Restrictions-UCBs' dated July 01, 2015. RBI said the action followed an inspection of the bank's financial position as on March 31, 2019, a show-cause notice, and consideration of the bank's reply and additional submissions, after which the non-compliance was found substantiated under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS).
Why RBI Acted
Based on an inspection report for the bank's financial position as on March 31, 2019, RBI found non-compliance with the Master Circular on 'Exposure Norms and Statutory/Other Restrictions-UCBs' dated July 01, 2015. After issuing a show-cause notice and considering the bank's reply and additional submissions, RBI concluded that the charge of non-compliance was substantiated and imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS).
Operating Impact
The bank must absorb the penalty and ensure future compliance with RBI exposure norms and statutory/other restrictions applicable to UCBs. There is no stated operational ban or withdrawal restriction in this release, but continued non-compliance could attract further supervisory action.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 23 Jul 2021
- Effective From
- 23 Jul 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank