Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
13 Aug 2020
Case Brief
The Reserve Bank of India imposed a penalty of Rs 2 lakh on The Krishnanagar City Co-operative Bank Limited by order dated August 10, 2020. RBI said the bank contravened directions on "Exposure Norms and Statutory/Other Restrictions-UCBs", based on inspection findings for the bank's financial position as on March 31, 2019. After issuing a show-cause notice and reviewing the bank's reply, RBI concluded that the violation was substantiated and invoked 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/scrutiny report for the bank's financial position as on March 31, 2019 revealed contravention of and non-compliance with RBI directions on "Exposure Norms and Statutory/Other Restrictions-UCBs". A show-cause notice was issued, and after considering the bank's reply, RBI concluded that the charges of non-compliance were substantiated and warranted penalty. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe any operational restriction, suspension, or cancellation. The action is a regulatory compliance sanction and does not by itself invalidate customer transactions or agreements.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 10 Aug 2020
- Effective From
- 10 Aug 2020
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank