RBl imposes monetary penalty on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Limited, Gorakhpur, Uttar Pradesh

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹20.00 lakh on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Limited, Gorakhpur, Uttar Pradesh. RBI found that the bank had failed to adhere to specific directions issued under the Supervisory Action Framework (SAF), based on inspection findings for the financial position as on March 31, 2019. After issuing a show-cause notice and considering the bank's reply and oral submissions, RBI concluded that the violation was substantiated and imposed the penalty under the Banking Regulation Act, 1949.