Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
7 Mar 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Tiruvannamalai Co-operative Urban Bank Ltd (No.C0-570), Thiruvannamalai, Tamil Nadu. The penalty was based on inspection findings that the bank had violated / not complied with RBI directions issued under Exposure Norms and Statutory / Other Restrictions – UCBs. RBI said the bank’s reply and oral submissions were considered, but the non-compliance charge was substantiated, leading to the penalty under the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after an inspection (financial position as on March 31, 2020) found violations / non-compliance with directions issued under Exposure Norms and Statutory / Other Restrictions – UCBs. The bank was issued a show-cause notice, and after considering its reply and oral submissions, RBI held that the charge of non-compliance was substantiated. Action taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the penalty and continue to comply with RBI’s exposure-norm and restriction directions. The order has no stated direct impact on depositor access or business operations beyond the financial penalty and the underlying compliance obligation.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 1 Mar 2022
- Effective From
- 1 Mar 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank