Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
11 Apr 2022
Case Brief
RBI imposed a penalty dated April 07, 2022 on The Nanded Merchant’s Co-operative Bank Ltd., Nanded, Maharashtra for contravention of RBI directions on Exposure Norms and Statutory/Other Restrictions on UCBs. The inspection report as of March 31, 2020 found that the bank had not adhered to the prudential inter-bank (Gross) exposure limit. After issuing a show-cause notice and considering the bank’s replies and oral submissions, RBI held the charge substantiated and levied a monetary penalty under the Banking Regulation Act, 1949.
Why RBI Acted
Based on inspection findings as of March 31, 2020, RBI concluded that The Nanded Merchant’s Co-operative Bank Ltd., Nanded had contravened / not complied with directions issued on Exposure Norms and Statutory/Other Restrictions for UCBs. The specific lapse cited was non-adherence to the prudential inter-bank (Gross) exposure limit. After a show-cause notice, replies, and oral submissions, 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.
Operating Impact
The bank must absorb the monetary penalty; the release does not mention any new operating restriction or suspension. The compliance issue concerns adherence to RBI exposure norms, and the action serves as a regulatory censure for past non-compliance.
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 50,000
- Order Date
- 7 Apr 2022
- Effective From
- 7 Apr 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank