Reserve Bank of India imposes monetary penalty on Chiplun Urban Co-operative Bank Ltd., Ratnagiri

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2 lakh on Chiplun Urban Co-operative Bank Ltd., Ratnagiri, by order dated December 20, 2021. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, for contravention of RBI's directions on Exposure Norms and Statutory / Other Restrictions – UCBs. RBI said the bank had failed to adhere to the ceiling on advances to nominal members in certain cases, based on inspection findings for the bank's financial position as on March 31, 2020. RBI considered the bank's reply and submissions before concluding that the non-compliance was substantiated and warranted penalty.