Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
10 Aug 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Tapindu Urban Co-operative Bank Limited, Patna by order dated August 02, 2023. RBI said the bank failed to comply with its directions on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’, specifically prudential inter-bank exposure norms at the gross level, as revealed in the statutory inspection conducted with reference to the bank’s financial position as on March 31, 2022. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after issuance of a show-cause notice and consideration of the bank’s written and oral submissions. RBI also clarified that the action is based on regulatory compliance deficiencies and does not pronounce on the validity of any transaction or agreement with customers.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection and examination of the inspection report found that the bank had failed to comply with RBI directions on prudential inter-bank exposure norms at the gross level. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a show-cause notice, the bank’s reply, additional submissions, and oral hearing.
Operating Impact
The bank must absorb the monetary penalty and the finding of non-compliance, but the release does not impose any new operational restriction on deposits, lending, or customer access. The action primarily affects the bank and signals continued supervisory scrutiny of its exposure management and compliance controls.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 2 Aug 2023
- Effective From
- 2 Aug 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank