Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2,00,000 on Ordnance Equipment Factory Prarambhik Sahkari Bank Ltd., Kanpur, Uttar Pradesh, under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated instructions/guidelines relating to prudential norms on inter-bank gross and counterparty exposure limits and membership of credit information companies. After issuance of a show-cause notice and no written reply from the bank, RBI concluded the violations were substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Kanpur, U.P.