Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
7 Mar 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty on The People’s Urban Co-operative Bank Ltd., Tripunithura, Ernakulam, Kerala, after finding non-adherence to RBI directions on Income Recognition, Asset Classification, Provisioning and Other related Matters for UCBs. The bank had been issued a show-cause notice after an inspection of its financial position as on March 31, 2020 revealed violations/non-compliance. Following the bank’s reply and oral submissions at a personal hearing, RBI concluded the charge was substantiated and imposed the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after an inspection based on the bank’s financial position as on March 31, 2020 found violation / non-compliance with directions issued on Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs. After a show-cause notice, the bank’s reply and oral submissions were considered, and RBI concluded that the charge of non-compliance with RBI directions was substantiated 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 of ₹5 lakh; the release does not describe any new operating restriction, cancellation, or suspension. The action primarily affects the bank and reflects regulatory non-compliance, but it does not itself impose a direct restriction on depositors or customers beyond the penalty.
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 5.00 L
- Order Date
- 4 Mar 2022
- Effective From
- 4 Mar 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank