The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on cooperative sector cooperative Rabobank UA for lapses in regulatory compliance.
reserve Bank of India
The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on cooperative sector cooperative Rabobank UA for lapses in regulatory compliance. RBI said in a statement that this penalty has been imposed for violation of certain provisions of the Banking Regulation Act, 1949 and instructions related to ‘Transfer of Reserve Funds’.
The central bank said that it had conducted a Supervisory Appraisal Statutory Investigation (ISE) inquiry into the bank’s financial position as on March 31, 2020. In which the company was found to be in violation of the provisions of the Banking Regulation Act and the instructions issued by the RBI, RBI has also issued a show cause notice to the bank in this regard.
fine imposed after hearing
The statement said that after the response of the bank to the notice and the reply received in the personal hearing and subsequent additional information given by the bank, the Reserve Bank came to the conclusion that there was a violation of the rules and the monetary penalty on the bank was justified.
Heavy fine on them too
In another statement, the Reserve Bank said that Kolkata-based Village Financial Services has been fined Rs 5 lakh for non-compliance with certain provisions of the Know Your Customer rules. The central bank also said that it has imposed a fine of Rs 13 lakh on Ahmednagar Merchant Co-Operative Bank, Rs 2 lakh on Mahila Vikas Co-operative Bank of Ahmedabad.
Fine of more than Rs 53 lakh imposed on these two banks
Last week, RBI imposed a fine of Rs 50.35 lakh on Janalaxmi Co-operative Bank of Nashik. At the same time, a fine of Rs 3 lakh was also imposed on Noida Commercial Co-operative Bank of Ghaziabad.
The Reserve Bank of India (RBI) imposed a fine of Rs 50.35 lakh on Janalaxmi Co-operative Bank of Nashik for non-compliance with regulatory provisions. Janalakshmi Sahakari Bank has been fined for non-compliance with directions issued by the Reserve Bank on ‘Placement of Deposits by Primary (Urban) Co-operative Banks with other banks’ and ‘Subscription of Credit Information Companies (CICs)’.
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