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The Reserve Bank of India (RBI) has imposed, by an order dated September 22, 2022, a financial penalty of ₹10,000/- (Rupees Ten thousand solely) on The Urban Co-operative Bank Ltd., Cuttack, Odisha (the financial institution) for contravention of/ non-compliance with the instructions issued by RBI on the Depositor Education and Awareness Fund. This penalty has been imposed in train of powers vested in RBI below the provisions of Section 47 A (1) (c) learn with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, considering the failure of the financial institution to stick to the aforesaid instructions issued by RBI. This motion relies on deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects. Background A scrutiny of the information of the financial institution revealed, inter alia, violation/ non-compliance with aforementioned instructions issued by RBI to the extent the financial institution had didn’t switch all eligible balances to the Depositor Education and Awareness Fund however had submitted an incorrect certificates on this regard. Based on the identical, a Notice was issued to the financial institution advising it to indicate trigger as to why penalty shouldn’t be imposed for non-compliance with the instructions. After contemplating the financial institution’s reply and extra submissions made by it, RBI got here to the conclusion that the aforementioned cost of non-compliance with RBI instructions was substantiated and warranted imposition of financial penalty. (Yogesh Dayal) Press Release: 2022-2023/940 |
