Reserve Bank of India imposes monetary penalty on The Bank Employees’ Co-operative Bank Limited, Kolkata (West Bengal)

Case Brief

RBI imposed a monetary penalty of ₹2.00 lakh on The Bank Employees’ Co-operative Bank Limited, Kolkata (West Bengal) for contravention of RBI directions applicable to urban cooperative banks on exposure norms and statutory/other restrictions. The inspection for the bank’s position as of March 31, 2019 found that it had not adhered to prudential inter-bank (gross) exposure limits and counterparty limits. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then concluded that the charges were substantiated, leading to the penalty under the Banking Regulation Act, 1949.