Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
14 Nov 2022
Case Brief
RBI imposed a monetary penalty of ₹1.00 lakh on The Jamshedpur Urban Cooperative Bank Ltd., Jamshedpur, Jharkhand. The penalty was levied because the bank failed to adhere to specific directions issued under the Supervisory Action Framework (SAF), as revealed in the inspection report based on the bank’s financial position as on March 31, 2020. After a show-cause notice and consideration of the bank’s reply and additional submissions, RBI concluded that the non-compliance was substantiated and imposed the 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 after an inspection revealed non-adherence/violation of specific directions issued to the bank under the Supervisory Action Framework. The bank was issued a show-cause notice, and after considering its reply and additional submissions, RBI concluded that the charge of non-compliance was substantiated. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, for contravention of Section 36(1) read with Section 56.
Operating Impact
The bank must bear the monetary penalty; the release does not indicate any additional operational restriction beyond the fine. No direct impact on customers is described, though the enforcement action signals regulatory non-compliance.
Regulatory Basis
- Section 36 (1) read with Section 56 of the Banking Regulation Act, 1949
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 10 Nov 2022
- Effective From
- 10 Nov 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank