RBI imposes monetary penalty on Bharat Heavy Electricals Employees’ Co-operative Bank Limited, Kailasapuram, Tiruchirappalli, Tamil Nadu

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 10 lakh on Bharat Heavy Electricals Employees’ Co-operative Bank Limited, Kailasapuram, Tiruchirappalli, Tamil Nadu by order dated August 22, 2022. RBI said the bank had violated directions issued under Exposure Norms and Statutory/Other Restrictions – UCBs, based on findings from an inspection report and subsequent regulatory process. After a show-cause notice, the bank’s reply, and oral submissions, RBI concluded that the non-compliance was substantiated and warranted the penalty under the Banking Regulation Act, 1949 (AACS).