The Reserve Bank of India (RBI) has, by an order dated October 23, 2024, imposed a monetary penalty of ₹1.00 lakh (Rupees One lakh only) on Tura Urban Co-operative Bank Ltd., Tura, Meghalaya (the bank) for non-compliance with specific directions issued by RBI under Supervisory Action Framework (SAF). This penalty has been imposed in exercise of powers vested in RBI, conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. 

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions issued under SAF and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty.

The bank had:

1. incurred capital expenditure exceeding ₹25,000/- per year without prior approval of RBI in non-adherence to directions issued under SAF; and

2. sanctioned fresh loans in excess of the exposure limit prescribed under SAF.

(Puneet Pancholy)     
Chief General Manager

Press Release: 2024-2025/1422