Reserve Bank of India imposes monetary penalty on Mahila Nagrik Sahakari Bank Maryadit, Mahasamund (C.G) - ஆர்பிஐ - Reserve Bank of India
Reserve Bank of India imposes monetary penalty on Mahila Nagrik Sahakari Bank Maryadit, Mahasamund (C.G)
The Reserve Bank of India (RBl) has imposed, by an order dated December 15, 2021, a monetary penalty of ₹1.50 lakh (Rupees One lakh Fifty thousand only) on Mahila Nagrik Sahakari Bank Maryadit, Mahasamund, Chhattisgarh (the bank) for contravention of/ non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions-UCBs. 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, 2020, revealed, inter alia, that the bank had (i) not adhered to prudential inter-bank (Gross) exposure limit, and (ii) not complied with the prudential inter-bank Counter Party limit in contravention of/ non-compliance with the directions issued by RBI on Exposure Norms & Statutory/ Other Restrictions-UCBs. 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 replies and oral submission made during personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty. (Yogesh Dayal) Press Release: 2021-2022/1370 |