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The Reserve Bank of India (RBI) has imposed, by an order dated October 14, 2022, a financial penalty of ₹4.00 lakh (Rupees Four lakh solely) on The Rajgurunagar Sahakari Bank Limited, Pune (the financial institution) for contravention of the instructions issued by the Reserve Bank of India (RBI) on Interest Rate on Deposits. This penalty has been imposed in train of powers vested in RBI underneath the provisions of Section 47 A (1) (c) learn with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, making an allowance for the failure of the financial institution to stick to the aforesaid instructions issued by RBI. This motion is predicated 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 The Inspection Report of the financial institution based mostly on its monetary place as on March 31, 2021, revealed inter-alia that the financial institution 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. 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 written reply to the present trigger discover, RBI got here to the conclusion that the aforesaid costs of non-compliance with RBI instructions was substantiated and warranted imposition of financial penalty. (Yogesh Dayal) Press Release: 2022-2023/1056 |
