Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
18 Sept 2012
Case Brief
The Reserve Bank of India imposed a penalty of Rs 1.00 lakh on The Rajasthan Urban Co-operative Bank Limited, Jaipur, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated directives/guidelines on individual and group exposure ceiling, IRAC norms, and window-dressing. After issuing a show-cause notice and considering the bank’s reply and personal submissions, RBI concluded the violations were substantiated and penalized the bank.
Why RBI Acted
The Reserve Bank of India imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was found to have violated RBI directives/guidelines relating to individual and group exposure ceiling, IRAC norms, and window-dressing. RBI issued a show-cause notice, considered the bank’s written reply and personal submissions, and concluded that the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe any operational restriction or licence action. The forward-looking impact is limited to the financial penalty and the compliance signal to the bank to adhere to exposure limits and accounting/reporting norms.
Regulatory Basis
- Section 47A (1)(b) read with Section 46(4) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank