Reserve Bank of India imposes monetary penalty on The Nabapalli Cooperative Bank Limited, Barasat, 24 Paraganas (N), West Bengal

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Nabapalli Cooperative Bank Limited, Barasat, 24 Paraganas (N), West Bengal by order dated March 08, 2022. The penalty was for contravention of RBI directions under 'Exposure Norms and Statutory/Other Restrictions – UCBs'. RBI said the bank had failed to adhere to the prudential inter-bank gross exposure limit and the prudential inter-bank counterparty limit, as revealed in an inspection based on the bank's financial position as on March 31, 2019. After considering the bank's reply and oral submissions, RBI concluded the charges were substantiated and imposed a penalty of Rs 4.00 lakh under the Banking Regulation Act, 1949.