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RBI imposes a monetary penalty of 1 rupee on Kurla Nagarik Sahakari Bank

The Reserve Bank of India (RBI) imposed a monetary penalty of 1 rupee on Mumbai’s Kurranagariksahakari Bank on Thursday for violating certain norms.

The penalty is based on “Violation of Article 26-A read in Article 56 of the Banking Regulation Act of 1949 (the Act), Article 26A of the 2014 Depositor Education and Awareness Fund System (Institution)”. The bank was charged for the “breach”. “Of the law,” RBI said in an official statement.

The RBI was issued by the Central Bank under the provisions of Section 46 (4) (i) and Section 47 A (1) (c) of the Banking Regulation Act of 1949 (the Act). A bank to follow the instructions above.

The RBI explains that its actions are based on flawed regulatory compliance and are not intended to represent the validity of any transaction or contract entered into by Kurla Nagarik Sahakari Bank with its customers.

The central bank said the Kurlanagariksahakari Bank’s inspection report, based on its financial position as of March 31, 2020, revealed, among other things, that the banks were not remittances of their balances. Over 10 years in the Depositor Education and Awareness Fund.

Based on this, the RBI issued a notice to the banks and advised them to indicate the breach of the provisions of the law and the instructions issued under the law and why penalties should not be imposed.

After reviewing Kurla Nagarik Sahakari Bank’s response to the personal hearing notice and oral submission, the RBI concluded that the offense of violating the RBI’s instructions above was proven. The RBI explained that the accusation justified imposing a monetary penalty on Kurla Nagarik Sahakari Bank.

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RBI imposes a monetary penalty of 1 rupee on Kurla Nagarik Sahakari Bank

Source link RBI imposes a monetary penalty of 1 rupee on Kurla Nagarik Sahakari Bank

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