Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
5 Oct 2018
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on The Navanirman Co-operative Urban Bank Ltd., Hyderabad, Telangana. RBI said the bank violated its directives/instructions/guidelines on exposure norms and statutory/other restrictions for urban co-operative banks. The action was taken under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), after a show-cause notice, the bank's written reply, and a personal hearing.
Why RBI Acted
RBI imposed a monetary penalty after concluding that The Navanirman Co-operative Urban Bank Ltd., Hyderabad had violated Reserve Bank of India directives/instructions/guidelines relating to Exposure Norms and Statutory/Other Restrictions applicable to UCBs. RBI issued a show-cause notice, considered the bank's written reply and personal hearing, and found the violations substantiated under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies).
Operating Impact
The bank must bear the monetary penalty; the release does not describe any additional operational restriction. The action serves as a compliance signal for the bank's adherence to RBI exposure and restriction norms, but no direct customer-facing restriction is stated in the text.
Regulatory Basis
- Section 47A (1) (c) read with Section 46 (4) of The Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank