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The Reserve Bank of India (RBI) has, by an order dated September 08, 2022, imposed a financial penalty of ₹25.00 lakh (Rupees Twenty-five lakh solely) on G S Mahanagar Co-operative Bank Limited, Mumbai, Maharashtra (the financial institution) for non-compliance with the instructions issued by RBI on ‘Maintenance of Deposit Accounts’. This penalty has been imposed in train of powers vested in RBI conferred underneath part 47 A (1) (c) learn with sections 46 (4) (i) and 56 of Banking Regulation Act, 1949 (BR Act). This motion relies on deficiency 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 statutory inspection of the financial institution carried out by RBI just about its monetary place as on March 31, 2020, and examination of the Risk Assessment Report and all associated correspondence pertaining to the identical, revealed, inter alia, that the financial institution had levied penal expenses for non-upkeep of minimal steadiness in financial savings financial institution accounts with out discover to the shoppers and with out offering one month time for restoration of the minimal steadiness within the accounts. 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 RBI instructions, as acknowledged therein. After contemplating the financial institution’s reply to the discover, the extra submissions made by it and the oral submissions made throughout the private listening to, RBI got here to the conclusion that the cost of non-compliance with the aforesaid RBI instructions was substantiated and warranted imposition of financial penalty. (Yogesh Dayal) Press Release: 2022-2023/862 |
