SC: Under RTE Act, States Cannot Justify Low Teacher Pay by Citing Centre’s Failure to Release Funds  ||  Supreme Court: While a Child’s Welfare is Paramount, It is Not the Sole Factor in Custody Disputes  ||  Supreme Court: High Court Cannot Reject a Plaint While Exercising Jurisdiction under Article 227  ||  SC: Merely Leasing an Apartment Does Not Bar a Flat Buyer’s Consumer Complaint Against the Builder  ||  Delhi HC: Unproven Adultery Allegations Cannot be Used to Deny Interim Maintenance under the DV Act  ||  Bombay HC: Storing Items in a Fridge isn’t Manufacturing and Doesn’t Make Premises a Factory  ||  Kerala HC: Disability Pension is Not Payable if the Condition is Unrelated to Military Service  ||  Supreme Court: Award Valid Even If Passed After Mandate Expiry When Court Extends Time  ||  Jharkhand HC: Regular Bail Plea During Interim Bail is Not Maintainable under Section 483 BNSS  ||  Cal HC: Theft Claims and Public Humiliation Alone Don’t Amount To Abetment of Suicide U/S 306 IPC    

Imposition of penalty on Kohinoor Sahakari Bank Ltd., Ichalkaranji- (Reserve Bank of India) (29 May 2023)

MANU/RPRL/0307/2023

Banking

The Reserve Bank of India (RBI) has, by an order dated May 23, 2023, imposed a monetary penalty of ₹1.00 lakh (Rupees One lakh only) on Kohinoor Sahakari Bank Ltd., Ichalkaranji (the bank) for non-compliance with the directions issued by RBI on 'Investments by Primary (Urban) Co-operative Banks'. This penalty has been imposed in exercise of powers vested in RBI conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of Banking Regulation Act, 1949 (BR Act).

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2022, and examination of the Risk Assessment Report and all related correspondence pertaining to the same, revealed, inter alia, that the bank had failed to adhere to (i) prudential inter-bank gross exposure limit and (ii) inter-bank counter party limit. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the RBI directions, as stated therein.

After considering the bank's reply to the notice, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions.

Tags :   IMPOSITION  PENALTY  NON-COMPLIANCE

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved