RBI
RBI imposes monetary penalty on The Karad Urban Co-operative Bank Ltd
Mumbai/UNI: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 10 lakh (Rupees Ten lakh only) on The Karad Urban Co-operative Bank Ltd for contravention of certain directions issued by RBI under the Supervisory Action Framework.
The 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) 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.
The statutory inspection of the bank with reference to its financial position as on March 31, 2019, conducted by RBI, revealed, inter alia, contravention of the above-mentioned directions issued by RBI. In furtherance thereto, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the directions issued by RBI. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI concluded that the aforesaid charge of contravention of RBI directions was substantiated and warranted imposition of monetary penalty.
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