Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
24 Dec 2018
Case Brief
The Reserve Bank of India imposed a monetary penalty on Walchandnagar Sahakari Bank Ltd., Walchandnagar, District Pune, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for violation of RBI directive/instructions, delayed or non-submission of compliance to irregularities noted during RBI inspections in 2014 and 2016, and failure to submit replies to RBI show-cause notices. RBI said the violations were substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) because the bank violated RBI directive/instructions, delayed or did not submit compliance for various irregularities observed during RBI inspections in 2014 and 2016, and did not submit replies to RBI show-cause notices. RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty of ₹5 lakh; the release does not describe any additional operational restriction, but it signals supervisory non-compliance and may affect future regulatory scrutiny. Depositors and counterparties are not said to face any immediate direct restriction from this order.
Regulatory Basis
- Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank