RBI imposes monetary penalty on Noble Co-operative Bank Limited, Noida, Uttar Pradesh - ਆਰਬੀਆਈ - Reserve Bank of India
RBI imposes monetary penalty on Noble Co-operative Bank Limited, Noida, Uttar Pradesh
The Reserve Bank of India (RBI) has, by an order dated February 23, 2024, imposed a monetary penalty of ₹5.00 lakh (Rupees Five lakh only) on Noble Co-operative Bank Limited, Noida, Uttar Pradesh (the bank) for non-compliance with the specific directions issued by RBI under the Supervisory Action Framework (SAF). This penalty has been imposed in exercise of powers conferred on RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Background The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2022, and examination of the Risk Assessment Report, Inspection Report and all correspondence related thereto revealed, inter-alia, that the bank had sanctioned uncollateralised fresh loans and advances. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the said directions, as stated therein. After considering the bank’s reply to the notice and additional submissions made by it, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank.
(Yogesh Dayal) Press Release: 2023-2024/1967 |