Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Sept 2024
Case Brief
RBI imposed a monetary penalty of ₹5.00 lakh on The Urban Co-operative Bank Limited., Anantnag by order dated September 12, 2024. The penalty followed a statutory inspection with reference to the bank’s financial position as on March 31, 2023, which found non-compliance with RBI directions on ‘Investments by Primary (Urban) Co-operative Banks’. RBI specifically sustained the charge of non-adherence to prudential inter-bank (gross) and counter party exposure limits. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection found the bank had not complied with directions issued on ‘Investments by Primary (Urban) Co-operative Banks’. The sustained charge was non-adherence to prudential inter-bank (gross) and counter party exposure limits, based on supervisory findings and related correspondence. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty, but the release does not impose any fresh operational restriction on business. RBI notes the penalty is without prejudice to any other action that may be initiated, so further supervisory or enforcement action remains possible.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 12 Sept 2024
- Effective From
- 12 Sept 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank