RBI fines Mandi cooperative bank in Rs 6 lakh for not
complying with rules
The Reserve
Bank of India (RBI) on Wednesday said it has fined the Mandi Urban
Co-operative Bank in Himachal Pradesh Rs 6 lakh for ''non-compliance'' with
provisions of its directions on 'Placement of Deposits with Other Banks by
Primary (Urban) Co-operative Banks (UCBs)'.
''This
penalty has been imposed in exercise of powers vested in RBI, conferred under
the provisions of section 47A(1)(c) read with sections 46 (4)(i) and 56 of the
Banking Regulation Act, 1949,'' said the RBI in a press release.
The RBI said that the select inspection of the cooperative bank
was conducted with reference to its financial position as on March 31, 2022. ''Based on supervisory findings of non-compliance with RBI
directions and related correspondence in that regard, a notice was issued to
the bank advising it to show cause as to why penalty should not be imposed on
it for its failure to comply with the said directions,'' it said.
After reviewing the Mandi bank s response, the RBI said it found
that the lender had breached the prudential interbank exposure limit both on a
gross and counterparty basis. Consequently, the fine was imposed.
The RBI said the fine 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.''
''Imposition of this monetary penalty is without prejudice to any
other action that may be initiated by RBI against the bank,'' it said.
www.business-standard.com
dt. 28.03.2024