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The Chiplun Urban Co-operative Bank Ltd., Chiplun, Maharashtra

Co-operative bankChiplun, Maharashtra

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 2.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

17 Aug 2023

Case Brief

RBI imposed a monetary penalty on The Chiplun Urban Co-operative Bank Ltd., Chiplun, Maharashtra, after a statutory inspection and related examination found non-compliance with RBI directions. The bank had sanctioned gold loans under the Bullet Repayment Scheme beyond the regulatory limit and levied penal charges for non-maintenance of minimum balance in savings accounts at a fixed rate rather than proportionate to the actual shortfall. RBI said the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, and clarified that the action was based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement with customers.

Why RBI Acted

Lending normsFair practices

RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after a statutory inspection found that the bank had sanctioned gold loans under the Bullet Repayment Scheme beyond the regulatory limit and charged penal fees for non-maintenance of minimum balance in savings accounts at a fixed rate instead of proportionate to the actual shortfall. RBI concluded that these non-compliances with its directions on 'Management of Advances' and 'Maintenance of Deposit Accounts' were substantiated.

Operating Impact

The bank must absorb the monetary penalty and address the compliance gaps identified by RBI in its lending and deposit-account practices. The order does not itself impose an operating ban or restriction on customers, but it signals heightened supervisory scrutiny of the bank’s adherence to RBI directions.

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
9 Aug 2023
Effective From
9 Aug 2023
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank