Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
8 Aug 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Sawaimadhopur Urban Co-operative Bank Limited, Sawaimadhopur under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The violation related to RBI directives/guidelines on the ceiling on unsecured advances applicable to urban co-operative banks. RBI issued a show-cause notice, reviewed the bank's written reply and personal submissions, and concluded that the violations were substantiated.
Why RBI Acted
RBI imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) because the bank violated RBI directives/guidelines relating to the ceiling on unsecured advances applicable to urban co-operative banks. The bank had been issued a show-cause notice and submitted a written reply; after considering the facts, reply, and personal submissions, RBI concluded that the violations were substantiated and warranted penalty.
Operating Impact
The bank must pay the penalty; the release does not mention any operational restriction or license impact. The adverse effect is limited to the financial penalty and the regulatory finding of non-compliance.
Regulatory Basis
- Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank