The Reserve Bank of India has imposed a penalty of ₹ 50,000/- (Rupees Fifty Thousand only) on Vananchal Gramin Bank, Dumka, Jharkhand in exercise of powers vested in it under provisions of Section 47A read with Section 46 (4) of the Banking Regulation Act, 1949, for violation of Branch Licensing Guidelines.

The Reserve Bank of India had issued a show cause notice to the bank in response to which the banks submitted a written reply. After considering the facts of the case, the bank’s reply and personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the penalty.

Ajit Prasad

Assistant General Manager

Branch Licensing non-compliance triggers administrative penalty after statutory show-cause process and substantiation of violations following regulatory review. Imposition of an administrative penalty under Section 47A read with Section 46(4) of the Banking Regulation Act followed a finding of non compliance with Branch Licensing Guidelines. The enforcement process comprised a show cause notice, written reply and personal submissions, and a factual assessment that led the regulator to conclude the violations were substantiated and to apply a monetary sanction.