Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
18 Sept 2023
Case Brief
RBI imposed a monetary penalty of ₹3.00 lakh on The Harij Nagrik Sahakari Bank Ltd., Harij, Gujarat for non-compliance with its directions on maintenance of Cash Reserve Ratio (CRR), placement of deposits with other banks by primary urban co-operative banks, and interest rate on deposits. RBI said the bank had failed to maintain the minimum CRR for a few days, breached the inter-bank counter-party exposure limit, and failed to pay applicable interest on deposits in the current accounts of deceased individual depositors or sole proprietorship concerns. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty after its inspection found that the bank failed to maintain the minimum Cash Reserve Ratio for a few days, breached the inter-bank counter-party exposure limit, and failed to pay applicable interest on deposits in the current accounts of deceased individual depositors or sole proprietorship concerns. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must bear the monetary penalty and is expected to strengthen compliance with reserve requirements, inter-bank exposure limits, and deposit-interest obligations. The order does not say the underlying transactions are invalid, but it signals regulatory non-compliance and may prompt tighter internal controls and supervision.
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 3.00 L
- Order Date
- 22 Aug 2023
- Effective From
- 22 Aug 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank