Reserve Bank of India imposes monetary penalty on The Manipur Women’s Cooperative Bank Limited, Paona Bazar, Imphal, Manipur

Case Brief

RBI imposed a monetary penalty of ₹2.00 lakh on The Manipur Women’s Cooperative Bank Limited, Paona Bazar, Imphal, Manipur by order dated March 09, 2022. The penalty was imposed for contravention of and non-adherence to RBI directions under ‘Exposure Norms and Statutory/Other Restrictions – UCBs’, after an inspection found that the bank had not adhered to the prudential inter-bank (Gross) exposure limit and had not complied with the prudential inter-bank counterparty limit. RBI issued a show-cause notice, considered the bank’s reply and additional submissions, and concluded that the non-compliance was substantiated, warranting the penalty under the Banking Regulation Act, 1949.