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The Reserve Bank of India (RBI) has imposed, by an order dated August 29, 2022, a financial penalty of ₹5.00 lakh (Rupees Five Lakh solely) on the Rani Laxmibai Urban Co-operative Bank Ltd., Jhansi, Uttar Pradesh (the financial institution) for contravention of part 35A, part 36 (1) (a) learn with part 56 of the Banking Regulation Act, 1949 because the financial institution failed to stick to particular instructions issued to it by RBI below Supervisory Action Framework (SAF). 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 supposed 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, 2020, revealed, inter alia, non-adherence/violation of particular instructions issued to the financial institution by RBI below Supervisory Action Framework (SAF). 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 violation of the stated instructions. After contemplating the financial institution’s reply to the discover, RBI got here to the conclusion that the aforesaid cost of non-adherence/violation of RBI instructions was substantiated and warranted imposition of financial penalty. (Yogesh Dayal) Press Release: 2022-2023/813 |
