Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
21 Feb 2022
Case Brief
RBI, by order dated February 15, 2022, imposed a monetary penalty of Rs 2 lakh on The Big Kancheepuram Co-operative Town Bank Limited (No.3), Kancheepuram, Tamil Nadu. The penalty was imposed after an inspection based on the bank’s financial position as of March 31, 2020, which revealed violations/non-compliance with directions issued under Exposure Norms and Statutory / Other Restrictions – UCBs. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charge was substantiated. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Why RBI Acted
Based on an inspection of the bank’s financial position as on March 31, 2020, RBI found violation/non-compliance with directions issued under Exposure Norms and Statutory / Other Restrictions – UCBs. After a show-cause notice, the bank’s reply and oral submissions were considered, and RBI concluded that the non-compliance was substantiated, warranting a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must bear the monetary penalty; no operational restriction or suspension is imposed by this release. The action serves as a regulatory sanction for past non-compliance and does not by itself alter customer transactions or the validity of existing agreements.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 15 Feb 2022
- Effective From
- 15 Feb 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank