Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
14 Nov 2022
Case Brief
By an order dated November 09, 2022, RBI imposed a monetary penalty of ₹2.00 lakh on The Santrampur Urban Co-operative Bank Ltd., Santrampur, district Mahisagar (Gujarat). The penalty was imposed because a statutory inspection found that the bank had not maintained the minimum Cash Reserve Ratio (CRR), which constituted contravention of RBI directions on maintenance of Statutory Reserves—CRR and SLR for Primary (Urban) Co-operative Banks. RBI stated that the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any transaction or agreement with customers.
Why RBI Acted
RBI imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a statutory inspection found that the bank had not maintained the minimum Cash Reserve Ratio (CRR). This amounted to contravention of RBI directions on Maintenance of Statutory Reserves – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) by Primary (Urban) Co-operative Banks.
Operating Impact
The bank must absorb the monetary penalty; no additional operational restriction is described in this release. The finding records a compliance breach under RBI reserve maintenance directions, but the order does not itself impose deposit, lending, or onboarding curbs.
Regulatory Basis
- Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 9 Nov 2022
- Effective From
- 9 Nov 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank