RBI imposes monetary penalty on The Manipur State Co-operative Bank Ltd., Manipur

Case Brief

The RBI, by order dated August 22, 2024, imposed a monetary penalty of Rs 2 lakh on The Manipur State Co-operative Bank Ltd., Manipur. The action followed a statutory inspection by NABARD for the bank’s financial position as on March 31, 2023, and a subsequent show-cause process. RBI found that the bank had failed to dispose certain Non-Banking Assets within the prescribed period and had failed to report customer credit information to four Credit Information Companies, amounting to contraventions of Section 9 of the Banking Regulation Act, 1949 and non-compliance with the Credit Information Companies (Regulation) Act, 2005. RBI noted that the penalty was based on deficiencies in regulatory compliance and was without prejudice to any other action that may be initiated.