Penalty - NewNerve

RBI Imposes Penalty on Fatehabad Central Cooperative Bank for Non-Compliance with Unclaimed Funds Transfer Rules

23Apr

By Ankit1 Comment

BFSI, Banking, Goverment Notice/Circulars

RBI Imposes Penalty on Fatehabad Central Cooperative Bank for Non-Compliance with Unclaimed Funds Transfer Rules

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2 lakh on The Fatehabad Central Cooperative Bank Limited, Fatehabad, for contravention of the provisions of section 26A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act). The penalty was imposed based on the findings of a statutory inspection conducted by National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on March 31, 2022. The inspection revealed that the bank had not transferred the eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time limit. This action is in violation of the provisions of section 26A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act). Also Read: RBI Imp...

RBI Imposes Monetary Penalty on Panvel Co-operative Urban Bank

23Apr

By Ankit1 Comment

BFSI, Goverment Notice/Circulars

RBI Imposes Monetary Penalty on Panvel Co-operative Urban Bank

In a move to ensure compliance with regulatory directives, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.00 lakh on The Panvel Co-operative Urban Bank Ltd., Raigad, Maharashtra. According to the press release, the penalty was levied based on the findings of a statutory inspection conducted by the RBI, which revealed the bank's non-compliance with directions issued under the 'Supervisory Action Framework' (SAF) for Primary (Urban) Co-operative Banks (UCBs). Specifically, the RBI found that the bank had sanctioned fresh loans carrying a risk weight of more than 100%, in violation of the specific directions issued under the SAF. After considering the bank's response to the show-cause notice, the RBI determined that the charge of non-compliance was sustained, warra...

RBI Imposes Monetary Penalty on Jogindra Central Co-operative Bank for Non-Compliance

23Apr

By AnkitNo Comments

BFSI, Banking, Goverment Notice/Circulars

RBI Imposes Monetary Penalty on Jogindra Central Co-operative Bank for Non-Compliance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.5 lakh on Jogindra Central Co-operative Bank Ltd., Solan, Himachal Pradesh, for non-compliance with directions issued by National Bank for Agriculture and Rural Development (NABARD) on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’. Monetary Penalty The penalty was imposed based on the findings of a statutory inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2021. The inspection revealed that the bank had delayed in reporting frauds. This action is in violation of NABARD’s directions on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’. Also Read: RBI Imposes Penalty on Ambarnath Jai Hind Co-operative Bank for Non-Compliance The RBI h...

RBI Imposes Penalty on Ambarnath Jai Hind Co-operative Bank for Non-Compliance

23Apr

By Ankit2 Comments

BFSI, Goverment Notice/Circulars

RBI Imposes Penalty on Ambarnath Jai Hind Co-operative Bank for Non-Compliance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3 lakh on Ambarnath Jai Hind Co-operative Bank Limited, Ambarnath, Maharashtra, for non-compliance with certain provisions of RBI directions on ‘Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks’. The penalty was imposed based on the findings of a statutory inspection conducted by RBI with reference to the bank’s financial position as on March 31, 2023. The inspection revealed that the bank had: Collected fixed penal charges for shortfall in the maintenance of minimum balance in savings bank accounts without giving one month notice to customers regarding minimum balance requirement. Collected penal charges for non-maintenance of minimum balance in inoperative accounts. Charged for the activa...

RBI Imposes Penalty on The Uttarakhand Grameen Bank for Regulatory Non-Compliance

9Apr

By AnkitNo Comments

Banking, Finance, NBFC

RBI Imposes Penalty on The Uttarakhand Grameen Bank for Regulatory Non-Compliance

Dehradoon. The Reserve Bank of India (RBI) has recently wielded its regulatory authority by imposing a monetary penalty of ₹5.00 lakh on The Uttarakhand Grameen Bank located in Dehradun. The penalty comes as a result of the bank's failure to adhere to the provisions outlined in the Banking Regulation Act, 1949. This move by the RBI underscores the importance of regulatory compliance within the banking sector. The penalty, issued on March 27, 2024, stems from the bank's contravention of section 26A(2) in conjunction with section 51 of the BR Act. The statutory inspection of the bank, conducted by the National Bank for Agriculture and Rural Development (NABARD), highlighted non-compliance with statutory provisions, prompting the RBI to initiate necessary action. During the inspection, ...