Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Dec 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Halol Urban Co-operative Bank Ltd., Halol, Dist. Panchmahal (Gujarat), after a statutory inspection found that the bank had not maintained the minimum Cash Reserve Ratio (CRR). RBI said this constituted contravention of its directions on maintenance of statutory reserves — CRR and SLR — applicable to primary (urban) co-operative banks. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a show-cause process and consideration of the bank’s reply.
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 a statutory inspection found that the bank had not maintained the minimum CRR. RBI concluded this amounted to contravention of its directions on maintenance of statutory reserves — Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) by Primary (Urban) Co-operative Banks.
Operating Impact
The bank must absorb the penalty and no forward-looking operational restriction is described in this release. The action serves as a compliance sanction for the bank, while the underlying RBI directions on statutory reserves remain applicable going forward.
Regulatory Basis
- Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 12 Dec 2022
- Effective From
- 12 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank