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The Reserve Bank of India (RBl) has imposed, by an order dated November 04, 2022, a financial penalty of ₹1.00 lakh (Rupees One lakh solely) on Pragati Mahila Nagarik Sahakari Bank Maryadit, Bhilai (Chhattisgarh) (the financial institution) for contravention of/ non-compliance with the instructions issued by the RBI to Urban Co-operative Banks on “Exposure Norms and Statutory / Other Restrictions – UCBs”. 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, considering 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 A scrutiny of the information of the financial institution primarily based on its monetary place as on March 31, 2021, revealed, inter alia, that the financial institution had sanctioned unsecured advances above the permissible restrict in sure instances, in contravention of/ non-compliance with the aforesaid instructions issued by RBI. Based on the identical, a Notice was issued to the financial institution advising it to point out trigger as to why penalty shouldn’t be imposed for non-compliance with the instructions. After contemplating the financial institution’s replies and oral submissions made throughout private listening to, RBI got here to the conclusion that the aforesaid cost of non-compliance with RBI instructions was substantiated and warranted imposition of financial penalty. (Yogesh Dayal) Press Release: 2022-2023/1164 |
