Reserve Bank of India imposes monetary penalty on Nagrik Sahakari Bank Maryadit, Raipur (C.G)

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 4.50 lakh on Nagrik Sahakari Bank Maryadit, Raipur, Chhattisgarh, for contravention of RBI directions applicable to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions and KYC. An inspection report for the bank's position as on March 31, 2020 found that it had not adhered to prudential inter-bank (Gross) exposure limits, had not complied with the prudential inter-bank counterparty limit, and had no system to generate alerts and identify suspicious transactions. After considering the bank's reply and oral submissions, RBI concluded that the charges were substantiated and warranted penalty under the Banking Regulation Act, 1949.