The Reserve Bank of India (RBI) has, by an order dated September 07, 2022, imposed a monetary penalty of ₹59.10 lakh (Rupees Fifty nine lakh and ten thousand only) on Woori Bank (the bank) for non-compliance with the directions issued by RBI on ‘Creation of a Central Repository of Large Common Exposures - Across Banks’ dated September 11, 2013 read with ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’ dated February 13, 2014 and Reserve Bank of India (Interest Rate on Deposits) Directions, 2016. This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.

This action is based on the 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

Statutory Inspection for Supervisory Evaluation (lSE) of the bank was conducted by RBI with reference to bank’s financial position as on March 31, 2020, and the examination of the Select Scope Report 2020 and all related correspondences pertaining to the same revealed, inter alia, that the bank failed to (i) report information on CRILC in respect of customers with non-fund based exposure of more than ₹5 crore, and (ii) pay interest on deposits at rates strictly as per the schedule of interest rates disclosed in advance, in certain instances. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions, as stated therein.

After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/855