Recorded RBI impact
Fine: Rs 30.9 L
Monetary penalty · Fresh imposition
Published by RBI
19 Dec 2022
Case Brief
RBI, by order dated December 14, 2022, imposed a monetary penalty of Rs 30.85 lakh on The Delhi State Cooperative Bank Ltd., New Delhi. The action followed a NABARD inspection and related correspondence that found deficiencies in the bank’s regulatory compliance, including weak suspicious-transaction identification/reporting processes, breach of housing finance exposure limits, and delayed reporting of fraud cases to NABARD. 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, and clarified that the action was based on regulatory deficiencies rather than the validity of customer transactions.
Why RBI Acted
Based on NABARD's statutory inspection as of March 31, 2020, RBI found that the bank did not use robust software for effective identification and reporting of suspicious transactions, did not abide by the limit on exposure to housing finance, and did not report fraud cases to NABARD within the stipulated timeline. RBI imposed a monetary penalty 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/NABARD. The order does not itself bar operations, but it signals continued supervisory scrutiny over KYC, housing finance exposure, and fraud reporting practices.
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 30.9 L
- Order Date
- 14 Dec 2022
- Effective From
- 14 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank