Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
14 Mar 2022
Case Brief
RBI imposed a monetary penalty of ₹2.00 lakh on The Manipur Women’s Cooperative Bank Limited, Paona Bazar, Imphal, Manipur by order dated March 09, 2022. The penalty was imposed for contravention of and non-adherence to RBI directions under ‘Exposure Norms and Statutory/Other Restrictions – UCBs’, after an inspection found that the bank had not adhered to the prudential inter-bank (Gross) exposure limit and had not complied with the prudential inter-bank counterparty limit. RBI issued a show-cause notice, considered the bank’s reply and additional submissions, and concluded that the non-compliance was substantiated, warranting the penalty under the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 because the bank contravened / did not adhere to directions issued under ‘Exposure Norms and Statutory/Other Restrictions – UCBs’. The inspection report for the position as on March 31, 2019 found that the bank had not adhered to the prudential inter-bank (Gross) exposure limit and had not complied with the prudential inter-bank counterparty limit. After a show-cause notice, RBI held the charges substantiated and imposed the penalty.
Operating Impact
The bank must bear the ₹2 lakh penalty; the release does not describe any additional operating restriction or withdrawal of business powers. The underlying compliance lapse relates to exposure norms, so the issue is a regulatory compliance finding rather than a customer-facing restriction.
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
- 9 Mar 2022
- Effective From
- 9 Mar 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank