Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
24 Feb 2025
Case Brief
By an order dated February 18, 2025, RBI imposed a monetary penalty on The Gulbarga and Yadgir District Co-operative Central Bank Ltd., Karnataka. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI found that the bank had failed to submit statutory returns to NABARD within the prescribed timeline. The action followed a show-cause notice and consideration of the bank’s reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after supervisory findings showed non-compliance with NABARD directions on ‘Offsite Surveillance System-Revision of Due dates for Submission of OSS/FMS Returns’. The sustained charge was that the bank failed to submit the statutory returns to NABARD within the prescribed timeline.
Operating Impact
The bank must absorb the monetary penalty and remain compliant with NABARD/RBI reporting timelines going forward. The order does not itself impose a business restriction, but it signals continued supervisory scrutiny and leaves open the possibility of further action for the same or related non-compliance.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act
- Section 27(3) read with Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 18 Feb 2025
- Effective From
- 18 Feb 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank