Supreme Court Explains that Comprehensive Motor Insurance Covers Occupants of a Vehicle  ||  Supreme Court: Judgments Operate Retrospectively Unless Made Prospective  ||  Supreme Court Clarifies Principles Governing Witness Recall under Order 18 Rule 17 of CPC  ||  Gujarat High Court: Res Judicata Prevents Trustees from Reopening Trust Property Disputes  ||  Allahabad HC: Trial Courts Cannot Examine Witnesses to Generate Fresh Evidence Before Cognizance  ||  Rajasthan HC: Funds Collected From an Illegal Toll Plaza Must Be Used For Tree Plantation  ||  Delhi HC: Minor’s Signature Alone Cannot Establish Consent for Pregnancy Termination  ||  Karnataka HC Allows ECIR Challenge under Article 226, Rejects ED’s Immunity Claim  ||  Allahabad High Court Upholds Transfer of a Dissolved Society's Assets to its Successor Company  ||  P&H HC: Cheque Bounce Cases Remain Compoundable Even After Appellate Courts Uphold Conviction    

RBI imposes monetary penalty on Shree Co-operative Bank Limited, Vadodara (Gujarat)- (Reserve Bank of India) (21 Aug 2023)

MANU/RPRL/0481/2023

Banking

The Reserve Bank of India (RBI) has imposed, by an Order dated August 11, 2023, a monetary penalty of ₹ 50,000/- (Rupees Fifty Thousand only) on Shree Co-operative Bank Limited, Vadodara, Gujarat (the bank) for non-compliance with direction issued by RBI on 'Loans and advances to directors, relatives, firms/concerns in which they are interested'. This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949.

This action is based on 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 the bank's financial position as on March 31, 2022, and examination of the Inspection Report, Risk Assessment Report pertaining thereto and all related correspondence pertaining to the same revealed, inter-alia, that the bank had sanctioned loan wherein spouse of one of the bank's directors stood as surety/guarantor. 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 on it for failure to comply with the directions stated therein.

After considering the bank's reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI direction was substantiated and warranted imposition of monetary penalty.

Tags : PENALTY   IMPOSITION   NON-COMPLIANCE  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved