Recorded RBI impact
Fine: Rs 2.50 L
Monetary penalty · Fresh imposition
Published by RBI
26 Jun 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Uttarpara Co-operative Bank Ltd., West Bengal, by order dated June 21, 2023. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 after RBI found contraventions of directions on Exposure Norms and Statutory / Other Restrictions – UCBs and Know Your Customer (KYC). The inspection reported failures relating to Prudential Inter-bank Counter-Party Limit, Prudential Inter-bank (Gross) Exposure Limit, and allotment of Unique Customer Identification Code (UCIC). RBI concluded that the charge of non-compliance was substantiated and imposed a fine of Rs 2,50,000.
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. The inspection found non-compliance with Prudential Inter-bank Counter-Party Limit, Prudential Inter-bank (Gross) Exposure Limit, and allotment of Unique Customer Identification Code (UCIC), indicating failure to adhere to RBI directions on Exposure Norms and Statutory / Other Restrictions – UCBs and Know Your Customer (KYC).
Operating Impact
The bank must bear the monetary penalty; the release does not impose a new business restriction or suspension. The action serves as a compliance sanction for past lapses and may influence supervisory scrutiny, but it does not by itself restrict current operations or customer access.
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 2.50 L
- Order Date
- 21 Jun 2023
- Effective From
- 21 Jun 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank