Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 3.00 lakh on Ordnance Equipment Factory Prarambhik Sahkari Bank Ltd., Kanpur for non-compliance with specific directions issued under the Supervisory Action Framework (SAF). The statutory inspection for the bank’s position as on March 31, 2022 found that it had offered interest rates on deposits higher than those offered by State Bank of India, contrary to RBI directions. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI concluded that the violation was established and warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Kanpur