Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Dec 2022
Case Brief
By an order dated December 16, 2022, RBI imposed a monetary penalty of ₹2.00 lakh on The Kachchh District Central Co-operative Bank Ltd., Kachchh (Gujarat) for contravention of its directions on Maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for StCBs and CCBs. The inspection for the financial position as on March 31, 2020 found that the bank had not maintained the minimum CRR. After a show-cause notice, the bank’s reply and oral submissions were considered, and RBI concluded the charge was substantiated and warranted the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
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 inspection found that the bank had not maintained the minimum Cash Reserve Ratio (CRR). This constituted contravention of RBI directions on Maintenance of CRR for Non-Scheduled StCBs and CCBs and Statutory Liquidity Ratio (SLR) for StCBs and CCBs.
Operating Impact
The bank must absorb the monetary penalty; the order does not invalidate customer transactions or impose an operational restriction. The consequence is limited to regulatory censure for the compliance lapse on CRR maintenance.
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
- 16 Dec 2022
- Effective From
- 16 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank