The Reserve Bank of India has imposed a monetary penalty of ₹ 2,00,000/- (Rupees Two Lakh Only) on Ordnance Equipment Factory Prarambhik Sahkari Bank Ltd., Kanpur, (U.P.) in exercise of powers vested under the provisions of Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) for violation of RBI Instructions/Guidelines relating to Prudential Norms on Inter-bank Gross and Counter Party Exposure Limits and Membership of Credit Information Companies.

The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank did not submit any written reply. After considering the facts of the case, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2828