RBI imposes monetary penalty on The Baghat Urban Co-operative Bank Limited, Solan, Himachal Pradesh

Case Brief

RBI ordered a monetary penalty of ₹8.00 lakh on The Baghat Urban Co-operative Bank Limited, Solan, Himachal Pradesh. The penalty was imposed because the bank failed to comply with specific directions issued by RBI under the Supervisory Action Framework (SAF), in contravention of sections 35A and 36(1)(a) read with section 56 of the Banking Regulation Act, 1949. RBI said the finding arose from the bank's inspection and risk assessment for the financial position as of March 31, 2021. After issuing a show-cause notice, considering the bank's reply, hearing submissions, and additional information, RBI concluded that the non-compliance was substantiated and that a penalty under section 47A(1)(c) read with section 46(4)(i) and section 56 was warranted.