Recorded RBI impact
Fine: Rs 59.1 L
Monetary penalty · Fresh imposition
Published by RBI
9 Sept 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹59.10 lakh on Woori Bank by order dated September 07, 2022. RBI found that the bank had not complied with directions on CRILC reporting for customers with non-fund based exposure above ₹5 crore and had, in some cases, failed to pay interest on deposits strictly in line with the rates disclosed in advance. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949, following a show-cause notice and consideration of the bank's reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty on Woori Bank under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949. The penalty was for non-compliance with RBI directions on creation of a Central Repository of Large Common Exposures / CRILC reporting and the Reserve Bank of India (Interest Rate on Deposits) Directions, 2016. In the statutory inspection, RBI found that the bank failed to report information on CRILC for customers with non-fund based exposure of more than ₹5 crore and, in certain instances, did not pay interest on deposits at rates strictly matching the schedule disclosed in advance.
Operating Impact
Woori Bank must absorb the monetary penalty and ensure future compliance with RBI’s CRILC reporting requirements and deposit interest-rate directions. The order does not allege invalidity of customer transactions, but it signals supervisory scrutiny over the bank’s reporting and deposit-pricing practices.
Regulatory Basis
- section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 59.1 L
- Order Date
- 7 Sept 2022
- Effective From
- 7 Sept 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank