INSUBCONTINENT EXCLUSIVE:
The RBI also imposed a monetary penalty on the Jammu - Kashmir State Co-operative Bank Limited, Srinagar.New Delhi: The Reserve Bank of
India (RBI) on Monday imposed a monetary penalty of Rs 2 crore on RBL Bank over non-compliance
The penalty is "for contravention of section 28 (h) of the RBI (Interest Rate on Deposits) Directions, 2016 and for non-compliance with the
provisions of clause (b) of sub-section (2) of section 10A of the Banking Regulation Act, 1949 (the Act)," the central bank stated in a
notification."For the non-compliance with the provisions of section 10 A (2) (b) of the Act, penalty is also imposed for the period during
which the contravention or default continued," it added.The RBI said, "The Statutory Inspection for Supervisory Evaluation (ISE) of the bank
was conducted by RBI with reference to its financial position as on March 31, 2019 (ISE 2019)
The examination of the Risk Assessment Report and Inspection Report pertaining to ISE 2019, RBI letter dated October 27, 2020 and related
correspondence in the matter, revealed, inter alia, contravention of the regulatory directions and non-compliance with the provisions of the
Act, to the extent of (i) opening of five savings deposit accounts in the name of a co-operative bank and (ii) failure to comply with the
provisions of section 10A(2)(b) of the Act relating to composition of Board of Directors."The Reserve Bank concluded that "the aforesaid
charge of contravention of/non-compliance with the directions/Act were substantiated and warranted imposition of monetary penalty on the
bank."RBI Fines Jammu - Kashmir State Co-operative Bank Limited, SrinagarIn a separate notification, the Reserve Bank also imposed a
monetary penalty of Rs 11 lakh on the Jammu - Kashmir State Co-operative Bank Limited, Srinagar
It said the fine is for "contravention of section 23 read with section 56 of the Banking Regulation Act, 1949.""The statutory inspection of
the bank was conducted by NABARD with reference to the bank's financial position as on March 31, 2019 and the Inspection Report pertaining
thereto, revealed, inter alia, contravention of section 23 read with section 56 of the Banking Regulation Act, 1949 as the bank had opened
branches without obtaining the prior permission of the RBI," the central bank saidAfter the lender's reply, RBI said it "came to the
conclusion that the aforesaid charge of contravention of section 23 read with section 56 of the Banking Regulation Act, 1949 was
substantiated and warranted imposition of monetary penalty."
