RBI monetary penalty on The Tapindu Urban Co-operative Bank Limited, Patna

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Tapindu Urban Co-operative Bank Limited, Patna by order dated August 02, 2023. RBI said the bank failed to comply with its directions on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’, specifically prudential inter-bank exposure norms at the gross level, as revealed in the statutory inspection conducted with reference to the bank’s financial position as on March 31, 2022. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after issuance of a show-cause notice and consideration of the bank’s written and oral submissions. RBI also clarified that the action is based on regulatory compliance deficiencies and does not pronounce on the validity of any transaction or agreement with customers.