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The Reserve Bank of India (RBI) has, by an Order dated November 09, 2022, imposed a financial penalty of ₹2.00 lakh (Rupees Two lakh solely) on The Santrampur Urban Co-operative Bank Ltd., Santrampur, district Mahisagar (Gujarat) (the financial institution) for contravention of instructions issued by RBI on ‘Maintenance of Statutory Reserves – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) by Primary (Urban) Co-operative Banks’. This penalty has been imposed in train of powers vested within the RBI below the provisions of Section 47 A (1) (c) learn with Sections 46 (4) (i) and 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 supposed to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its clients. Background The statutory inspection of the financial institution performed by RBI just about the financial institution’s monetary place as on March 31, 2019, and examination of the Inspection Report and all associated correspondence pertaining to the identical revealed, inter alia, that the financial institution had not maintained minimal Cash Reserve Ratio (CRR), leading to contravention of aforesaid instructions issued by RBI. In furtherance to the identical, a discover was issued to the financial institution advising it to indicate trigger as to why penalty shouldn’t be imposed for contravention of the aforesaid instructions issued by RBI. After contemplating the financial institution’s reply to the discover, the RBI got here to the conclusion that the aforesaid cost was substantiated and warranted imposition of financial penalty. (Yogesh Dayal) Press Release: 2022-2023/1201 |
