RBI imposes monetary penalty on Balangir District Central Cooperative Bank Limited, Balangir, Odisha - ஆர்பிஐ - Reserve Bank of India
RBI imposes monetary penalty on Balangir District Central Cooperative Bank Limited, Balangir, Odisha
The Reserve Bank of India (RBI) has imposed, by an order dated June 29, 2022, a monetary penalty of ₹1.00 lakh (Rupees One lakh only) on Balangir District Central Cooperative Bank Limited, Balangir, Odisha (the bank) for contravention of/ non-adherence with the provisions of Section 9 of the Banking Regulation Act, 1949 and the directions issued by RBI in this regard (Disposal of Non-banking Assets). This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. 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 inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, violation / non-compliance with directions issued on disposal of non-banking assets. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions. After considering the bank’s reply and additional submissions made thereof, RBI came to the conclusion that the aforementioned charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty. (Yogesh Dayal) Press Release: 2022-2023/471 |