Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
1 Feb 2018
Case Brief
The Reserve Bank of India has imposed a monetary penalty on The Sircilla Co-operative Urban Bank Ltd., Sircilla, Telangana, after finding violations of RBI directives and guidelines. The breaches related to exposure norms, statutory/other restrictions, and know your customer/anti-money laundering requirements. RBI issued a show-cause notice, reviewed the bank’s written reply and held a personal hearing before concluding that the violations were substantiated and penalty was warranted under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949.
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 and guidelines on Exposure Norms and Statutory/Other Restrictions and on Know Your Customer (KYC) Norms/Anti-Money Laundering (AML) Measures. RBI issued a show-cause notice, considered the bank’s written reply and personal hearing, and concluded that the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty of ₹50,000; the release does not describe any additional operational restriction, suspension, or cancellation. The action is backward-looking for the violation period and does not itself impose a new cap or ban on current operations.
Regulatory Basis
- Section 47A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank