RBI imposes monetary penalty on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Gwalior (M.P)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.50 lakh on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Gwalior (M.P) by order dated September 13, 2022. The penalty was levied for contravention of RBI directions issued to urban co-operative banks on Exposure Norms & Statutory/Other Restrictions and Know Your Customer (KYC), under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. RBI said the bank had not complied with the prudential inter-bank gross exposure limit, exceeded the prudential inter-bank counterparty exposure limit, and failed to ensure periodic review of risk categorization of customers. After a show-cause notice, RBI considered the bank's replies and oral submissions and found the charges substantiated, warranting the penalty.