Recorded RBI impact
Fine: Rs 2.50 L
Monetary penalty · Fresh imposition
Published by RBI
8 Jun 2018
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Secunderabad Co-operative Urban Bank Ltd., Hyderabad, Telangana, under Section 47A(1)(a) and (c) read with Section 46(2) and (4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated instructions on ATM installation, supervisory restrictions under the revised Supervisory Action Framework (SAF), exposure norms, submitted false information to RBI, and did not produce relevant records during inspection. After a show-cause notice, written reply, and personal hearing, RBI found the violations substantiated and imposed the penalty.
Why RBI Acted
The Reserve Bank of India imposed a penalty under Section 47A(1)(a) and (c) read with Section 46(2) and (4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was found to have violated RBI instructions/guidelines on installation of ATMs, supervisory restrictions imposed under the revised Supervisory Action Framework (SAF), exposure norms, submitted false information to RBI, and failed to produce relevant records during inspection. After a show-cause notice, written reply, and personal hearing, RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the financial penalty and the findings may affect its regulatory track record. No new operating ban or customer-facing restriction is stated in this release, but the violations concern compliance, reporting, and inspection cooperation.
Regulatory Basis
- Section 47A (1) (a) and (c) read with Section 46 (2) and (4) of The Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 2.50 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank