Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
13 Sept 2019
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5 lakh on The Goa Urban Co-operative Bank Ltd., Panaji by order dated September 11, 2019. The penalty was for non-compliance with RBI directions relating to the Supervisory Action Framework (SAF). RBI said the bank's statutory inspection, with reference to its financial position as on March 31, 2018, revealed non-compliance with SAF directions and maintenance of deposit accounts. After a show-cause process and consideration of the bank's reply and oral and written submissions, RBI concluded that the contravention warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty on The Goa Urban Co-operative Bank Ltd., Panaji for failure to comply with RBI directions issued with respect to the Supervisory Action Framework (SAF). The statutory inspection for the bank's financial position as on March 31, 2018 found non-compliance with SAF directions and maintenance of deposit accounts. After issuing a show-cause notice and considering the bank's reply and submissions, RBI concluded that the charge warranted 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 absorb the penalty and continue complying with RBI supervisory directions, especially those under SAF and relating to deposit account maintenance. The action has no stated direct restriction on operations, but it signals continuing regulatory scrutiny and the need for stronger compliance controls.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 11 Sept 2019
- Effective From
- 11 Sept 2019
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank