Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
5 Dec 2024
Case Brief
By an order dated December 04, 2024, RBI imposed a monetary penalty of ₹2.00 lakh on The Bapatla Co-operative Urban Bank Ltd., Andhra Pradesh. The penalty followed a statutory inspection and subsequent supervisory findings that the bank had sanctioned loans to its directors and their relatives, breached prudential inter-bank and counterparty exposure limits, and failed to upload KYC records of certain customers to the Central KYC Records Registry within the prescribed timeline. RBI said the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection and supervisory findings showed that the bank had sanctioned loans to its directors and their relatives, breached prudential inter-bank (gross) and counterparty exposure limits, and failed to upload KYC records of certain customers to the Central KYC Records Registry within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and address the compliance gaps identified by RBI. The order does not itself restrict business operations, but the bank remains exposed to any further supervisory or enforcement action RBI may choose to initiate based on the same deficiencies.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 4 Dec 2024
- Effective From
- 4 Dec 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank