Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
26 Jun 2023
Case Brief
By an order dated June 22, 2023, RBI imposed a monetary penalty of Rs 1.00 lakh on Ujjain Nagarik Sahakari Bank Maryadit, Ujjain, for contravention of RBI directions on 'Exposure Norms & Statutory/Other Restrictions - UCBs' and 'Investments by Primary (Urban) Co-operative Banks'. The supervisory findings, based on the bank's financial position as on March 31, 2022, indicated non-compliance with prudential inter-bank (gross) exposure limit and prudential inter-bank counterparty limit. RBI stated the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank's replies and oral submissions.
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, after supervisory findings showed the bank had not complied with prudential inter-bank (gross) exposure limit and prudential inter-bank counterparty limit. RBI concluded the contraventions of the relevant directions were substantiated.
Operating Impact
The bank must absorb the monetary penalty and continue operating, but the finding records non-compliance with RBI exposure and investment norms. The action does not itself impose a new operating restriction on depositors or borrowers, though it signals heightened regulatory scrutiny of the bank's compliance framework.
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 1.00 L
- Order Date
- 22 Jun 2023
- Effective From
- 22 Jun 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank