Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
10 Apr 2015
Case Brief
The Reserve Bank of India imposed a penalty of Rs 50,000 on Vananchal Gramin Bank, Dumka, Jharkhand under Section 47A read with Section 46(4) of the Banking Regulation Act, 1949. RBI said the bank had violated Branch Licensing Guidelines. After issuing a show cause notice, RBI considered the bank's reply and personal submissions and concluded that the violations were substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A read with Section 46(4) of the Banking Regulation Act, 1949 after issuing a show cause notice, considering the bank's written reply and personal submissions, and concluding that the violations of Branch Licensing Guidelines were substantiated.
Operating Impact
Vananchal Gramin Bank must absorb the monetary penalty and no operational restriction is described in this release. The action is a completed compliance sanction for the identified branch licensing violation.
Regulatory Basis
- Section 47A
- Section 46 (4) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank