Supreme Court: Expecting a Minor to Respond to a Public Court Notice is ‘Perverse’  ||  SC: Order 23 Rule 1 CPC Applies to S. 11 Arbitration Act, Barring Fresh Arbiration After Abandonment  ||  SC: Later Sanction Requirement Won’t Invalidate Cognizance Taken When No Prior Bar Existed  ||  SC: Documents Not Admitted by an Employee in an Enquiry Must be Proved Through Witnesses  ||  Delhi HC: MHA Has Authority to Initiate Disciplinary Proceedings Against AGMUT IAS Officers  ||  MP HC: Financial Hardship or Mere Allegations of Lawyer’s Negligence Cannot Excuse Delayed Appeal  ||  Patna HC: Blanket Approach of Denying Public Employment to Individuals Named in an FIR is Unfair  ||  Kerala HC: Repeated Possession of Even Small Quantities of Narcotic Drugs Can Invoke KAAPA  ||  Calcutta HC: Employers May Deduct Penal Rent From Gratuity of Employees Refusing to Vacate Quarters  ||  Calcutta High Court: ECI Not Singling Out Bengal, More Transfers in Other Poll-Bound States    

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