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The Reserve Bank of India (RBI) has imposed, by an order dated November 10, 2022, a financial penalty of ₹1.00 lakh (Rupees One lakh solely) on The Jamshedpur Urban Cooperative Bank Ltd., Jamshedpur, Jharkhand (the financial institution) for contravention of Section 36 (1) learn with Section 56 of the Banking Regulation Act, 1949 because the financial institution failed to stick to particular instructions beneath the Supervisory Action Framework (SAF). This penalty has been imposed in train of powers vested in RBI beneath 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 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 The inspection report of the financial institution primarily based 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 beneath 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 non-compliance with the mentioned 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: 2022-2023/1194 |
