Recorded RBI impact
Fine: Rs 10,000
Monetary penalty · Fresh imposition
Published by RBI
17 Aug 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Shibpur Co-operative Bank Ltd., West Bengal by order dated August 07, 2023. The penalty was for non-compliance with RBI directions on ‘Exposure Norms and Statutory/Other Restrictions - UCBs’, with the inspection report noting breaches of prudential inter-bank (gross) exposure limit and prudential inter-bank counter-party limit. RBI issued a show-cause notice, considered the bank’s written and oral submissions, and concluded that the non-compliance was substantiated, warranting the penalty under the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 after inspection found the bank had failed to comply with RBI directions on prudential inter-bank (gross) exposure limit and prudential inter-bank counter-party limit. RBI said the charge of non-compliance was substantiated after considering the bank’s reply, additional submissions, and oral hearing.
Operating Impact
The bank must absorb the ₹10,000 penalty; the release does not indicate any additional operating restriction, but it serves as an enforcement action for past non-compliance with exposure norms. No direct customer-facing restriction is stated.
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 10,000
- Order Date
- 7 Aug 2023
- Effective From
- 7 Aug 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank