RBI imposes monetary penalty on The Delhi State Cooperative Bank Ltd., New Delhi

Case Brief

RBI, by order dated December 14, 2022, imposed a monetary penalty of Rs 30.85 lakh on The Delhi State Cooperative Bank Ltd., New Delhi. The action followed a NABARD inspection and related correspondence that found deficiencies in the bank’s regulatory compliance, including weak suspicious-transaction identification/reporting processes, breach of housing finance exposure limits, and delayed reporting of fraud cases to NABARD. RBI said the penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and clarified that the action was based on regulatory deficiencies rather than the validity of customer transactions.