Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Budge Budge Nangi Co-operative Bank Ltd., Budge Budge, South 24 Parganas, Kolkata, West Bengal, on October 16, 2019. The penalty was levied under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for violations/non-adherence of Section 20 of the Act and RBI directives/guidelines in the Master Circular on Exposure Norms and Statutory/Other Restrictions for Urban Co-operative Banks dated July 1, 2015. RBI had issued a show-cause notice on March 25, 2019 based on inspection findings as on March 31, 2017, and after reviewing the bank’s reply and subsequent responses, found the charges substantiated and deserving of penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location