RBI penalty: RBI imposed a fine of Rs 2 crore on this bank, know what is the matter

RBI imposed penalty on RBL Bank: The Reserve Bank of India (RBI) on Monday imposed a fine of Rs 2 crore on private bank RBL Bank for not complying with the rules of the Regulatory Compliance and Banking Regulation Act.

Following the supervisory evaluation of RBL Bank, the Reserve Bank has issued notices regarding violation of certain regulatory compliances and non-compliance with the provisions of the Banking Regulation Act regarding opening of savings accounts in the name of a co-operative bank and composition of the Board of Directors. raised the issue.

RBI has issued a notice to the bank asking it to show reasons why penalty should not be imposed on it for violation and non-compliance with its directions and provisions of the Banking Regulation Act.

Answer was sought from the bank

RBI said, “After considering the reply of the bank to the show cause notice, the presentation made during the personal hearing and examination of the additional submissions made by the bank, the RBI has come to the conclusion that the directions, violations/non-compliances A warrant has been issued to impose monetary penalty on the bank for non-compliance.

RBI further said that this action has been taken due to reduction in regulatory compliances. It has no intention to adjudicate on the validity of any transaction or agreement entered into by the Bank for its customers.

11 lakh fine imposed on this bank

In another statement, RBI said that a fine of Rs 11 lakh has been imposed on Jammu and Kashmir State Co-operative Bank Limited, Srinagar for violation of certain sections of the Banking Regulation Act, 1949.

The statutory inspection of the bank was done by NABARD with reference to the financial position of the bank as on 31 March 2019.

Branches were opened without prior permission

During the inspection, violation of Section 56 as well as Section 23 of the Banking Regulation Act, 1949 was detected by the Bank as the Bank had opened its branches without prior approval of RBI.

RBI said that the penalty has been imposed due to the shortfall in regulatory compliances. It has no intention to adjudicate on the validity of any transaction or agreement entered into by the Bank for its customers.