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The Manipur State Co-operative Bank Ltd., Manipur

Co-operative bankManipur

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 2.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

27 Aug 2024

Case Brief

The RBI, by order dated August 22, 2024, imposed a monetary penalty of Rs 2 lakh on The Manipur State Co-operative Bank Ltd., Manipur. The action followed a statutory inspection by NABARD for the bank’s financial position as on March 31, 2023, and a subsequent show-cause process. RBI found that the bank had failed to dispose certain Non-Banking Assets within the prescribed period and had failed to report customer credit information to four Credit Information Companies, amounting to contraventions of Section 9 of the Banking Regulation Act, 1949 and non-compliance with the Credit Information Companies (Regulation) Act, 2005. RBI noted that the penalty was based on deficiencies in regulatory compliance and was without prejudice to any other action that may be initiated.

Why RBI Acted

Reporting & disclosureOther

RBI imposed a monetary penalty after supervisory inspection and a show-cause process found sustained charges against the bank. The bank had failed to dispose certain Non-Banking Assets (NBAs) within the prescribed period and failed to report credit information of customers to four Credit Information Companies (CICs). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act, 1949 and Section 25 of the Credit Information Companies (Regulation) Act, 2005.

Operating Impact

The bank must absorb the penalty and continue to comply with statutory requirements on disposal of NBAs and reporting of customer credit information to CICs. The order does not itself impose an operational restriction, but it signals supervisory non-compliance and leaves open the possibility of further RBI action.

Regulatory Basis

  • Section 9 of Banking Regulation Act, 1949
  • Section 47A (1) (c) read with Sections 46 (4) (i) and 56 of the BR Act, 1949
  • Section 25 of the Credit Information Companies (Regulation) Act, 2005

Action Facts

Primary Impact
Fine: Rs 2.00 L
Order Date
22 Aug 2024
Effective From
22 Aug 2024
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank