The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on Durgapur Mahila Co-operative Bank Limited, Kolkata, for non-compliance with certain provisions outlined in the ‘Master Circular on Investments by Primary (Urban) Co-operative Banks.’
The penalty, imposed on August 28, 2024, was enforced under the Banking Regulation Act, 1949. The penalty follows a statutory inspection by RBI as of March 31, 2023, which revealed the bank’s breach of prudential inter-bank counterparty and exposure limits.
Despite the bank’s response and submissions during a hearing, RBI determined the violations warranted the penalty.
RBI clarified that this action addresses regulatory deficiencies and does not affect the validity of the bank’s transactions with its customers.