Reserve Bank of India – Press Releases

0
111


The Reserve Bank of India (RBI) has, by an order dated September 20, 2022, imposed a financial penalty of ₹50.00 lakh (Rupees Fifty Lakh solely) on The Jalgaon People’s Co-operative Bank Ltd., Jalgaon, Maharashtra (the financial institution) for non-compliance with the instructions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters’ (IRAC norms), ‘Maintenance of Deposit Accounts’ and ‘Interest Rate on Deposits’. This penalty has been imposed in train of powers vested in RBI conferred beneath part 47A(1)(c) learn with sections 46(4)(i) and 56 of Banking Regulation Act, 1949 (BR Act).

This motion is predicated on deficiency in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects.

Background

The statutory inspection of the financial institution carried out by RBI on the subject of its monetary place as on March 31, 2020, and examination of the Risk Assessment Report, Inspection report and all associated correspondence pertaining to the identical, revealed, inter alia, that the financial institution (i) didn’t classify sure accounts as non-performing belongings in accordance with the IRAC norms, (ii) levied penal expenses for non-upkeep of minimal balances in SB accounts with out notifying the purchasers and with out offering one month time for restoration of minimal balances within the accounts, and (iii) didn’t pay curiosity on steadiness quantities mendacity in present accounts of deceased particular person depositors/ sole proprietorship issues whereas making funds to the claimants. In furtherance to the identical, a discover was issued to the financial institution advising it to indicate trigger as to why penalty shouldn’t be imposed for contravention of the RBI instructions, as acknowledged therein.

After contemplating the financial institution’s reply to the discover and the oral submissions made throughout the private listening to, RBI got here to the conclusion that the cost of non-compliance with the aforesaid RBI instructions was substantiated and warranted imposition of financial penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/941

See also  Reserve Bank of India - Press Releases



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here