The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.00 lakh (Rupees Two lakh only) on Nagrik Sahakari Bank Maryadit, Durg, Chhattisgarh (the bank).
The monetary penalty imposed for contravention of/ non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions-UCBs and Know Your Customer (KYC).
Read the full Press Release Issued by RBI:
Date : Nov 16, 2021
RBI imposes monetary penalty on Nagrik Sahakari Bank Maryadit, Durg, Chhattisgarh
The Reserve Bank of India (RBl) has imposed, by an order dated November 16, 2021, a monetary penalty of ₹2.00 lakh (Rupees Two lakh only) on Nagrik Sahakari Bank Maryadit, Durg, 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 and Know Your Customer (KYC). 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, (ii) not complied with the prudential inter-bank Counter Party limit and (iii) no system in place to identify suspicious transactions in contravention of/ non-compliance with the directions issued by RBI on Exposure Norms & Statutory/ Other Restrictions-UCBs and Know Your Customer (KYC). 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, 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)
Chief General Manager
Press Release: 2021-2022/1205
Join EduTaxTuber Network for the Latest updates on Income Tax, GST, Company Law, Stock Market and other related subjects.
Also, read other articles @ EduTaxTuber
-
CCPA Issues Strict Advisory Against Promoting Illegal Activities: Celebrities and Influencers Beware! 2024
-
Ministry of Finance Authorizes 13 New Commodities for Derivatives Trading!
-
RBI Stops IIFL Finance From Giving New Gold Loan: 2024
-
CBDT Notifies ITR-7: Income Tax Return Form for Assessment Year 2024-25
-
₹1.68 Trillion GST Collection: Ministry of Finance Cheers Surpassing Expectations
-
GST Registration Surprise: Expect Up to 30 Days After Aadhaar Verification
-
Vacancy for Senior Software Engineer: 50% work from home, Apply Now
-
Muft Bijli Yojana: Cabinet approves PM-Surya Ghar Muft Bijli Yojana: free electricity up to 300 units every month for One Crore households
-
Microsoft Hiring Technical Program Manager: 100% work from home | Apply Now
-
Vacancy in Deloitte Mumbai for Senior Consultant | Apply Now in Big 4