Recorded RBI impact
Fine: Rs 2.50 L
Monetary penalty · Fresh imposition
Published by RBI
29 Sept 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.50 lakh on The Madura Sourashtra Co-operative Bank Ltd. (A-336), Madurai, Tamil Nadu, by order dated September 29, 2021. The penalty was based on the bank’s non-adherence / violation of directions issued under the Supervisory Action Framework (SAF), as revealed in the inspection report for the financial position as on March 31, 2020. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the non-compliance was substantiated. The action was taken 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 inspection of the bank’s financial position as on March 31, 2020 revealed violation / non-compliance with directions issued under the Supervisory Action Framework (SAF). RBI found the charges substantiated after considering the bank’s reply and oral submissions at the personal hearing, and invoked 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 and continue complying with RBI’s SAF directions and supervisory requirements. The release does not describe a withdrawal of restrictions, so the adverse compliance finding remains relevant for the bank’s ongoing regulatory oversight.
Regulatory Basis
- 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 2.50 L
- Order Date
- 29 Sept 2021
- Effective From
- 29 Sept 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank