Recorded RBI impact
Fine: Rs 1.60 L
Monetary penalty · Fresh imposition
Published by RBI
9 Sept 2025
Case Brief
RBI imposed a monetary penalty of Rs 1.60 lakh on The Manipur Women’s Co-operative Bank Ltd. by order dated September 02, 2025. The penalty was imposed after a statutory inspection and a show-cause notice, when RBI found the bank had not complied with directions on ‘Exposure Norms and Statutory/Other Restrictions - UCBs’, specifically by breaching the prudential inter-bank (gross) exposure limit and the prudential inter-bank counter-party exposure limit. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
Following a statutory inspection with reference to the bank’s position as on March 31, 2024, RBI issued a show-cause notice based on supervisory findings of non-compliance with directions on ‘Exposure Norms and Statutory/Other Restrictions - UCBs’. After considering the bank’s reply and oral submissions, RBI sustained the charges that the bank had breached the prudential inter-bank (gross) exposure limit and the prudential inter-bank counter-party exposure limit, and imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and improve compliance with RBI’s exposure norms. The order does not by itself restrict operations, but it signals supervisory concern and leaves open the possibility of further RBI action for the same non-compliance.
Regulatory Basis
- Section 47A (1)(c)
- Sections 46 (4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.60 L
- Order Date
- 2 Sept 2025
- Effective From
- 2 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank