Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
8 Dec 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Urban Co-Operative Bank Limited, Anantnag by order dated December 08, 2021. RBI said the bank contravened section 35A read with section 56 of the Banking Regulation Act, 1949 and the regulations on Exposure Norms and Statutory/Other Restrictions for UCBs. The action followed an inspection that found non-adherence to exposure norms, after which RBI issued a show-cause notice and considered the bank's reply and submissions before confirming the violation and imposing penalty under section 47A(1)(c) read with section 46(4)(i) and section 56.
Why RBI Acted
RBI imposed a monetary penalty after its inspection (based on the bank's financial position as on March 31, 2019) found that the Urban Co-Operative Bank Limited, Anantnag failed to adhere to the provisions related to Exposure Norms. RBI issued a show-cause notice, considered the bank's written and oral submissions, and concluded that the violation of the Act and RBI directions was substantiated. The penalty was imposed 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 bear the monetary penalty, but the release does not impose any new operational restriction or licensing action. The adverse impact is limited to the financial penalty and the regulatory finding of non-compliance.
Regulatory Basis
- section 35A read with section 56 of the Banking Regulation Act, 1949
- 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
- 8 Dec 2021
- Effective From
- 8 Dec 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank