SC: Externally Procured Parts Given For Assembly, Not Used in Manufacture, Not Liable to Excise Duty  ||  SC: Upholding Surendra Koli’s Conviction on Rejected Evidence Would Violate Articles 14 and 21  ||  SC: In Execution Petition, Decree-Holder Must Prove Violation by Judgment Debtor  ||  SC: Insurers Must Compensate Accident Victims Despite Policy Breach, Can Recover From Owner  ||  Kerala HC: Long-Term Posting of Same Police Officer at Sabarimala May Affect Transparency, Efficiency  ||  Delhi HC: Post-Dated Cheques Given as Security Attract Section 138 NI Act After Liability Arises  ||  MP High Court: Railways Liable for Deaths on Tracks if it Fails to Take Preventive Measures  ||  Ker HC: NDPS Case Stands Even if Contraband Listed in Ml, if Chemical Report Shows Equivalent Weight  ||  Kerala HC: Father’s Retirement Benefits Can Be Attached for Child Maintenance Despite S.60(1)(g) CPC  ||  Supreme Court: A Decree Declared 'Nullity' Can be Challenged at Any Stage, Including Execution    

Reserve Bank of India imposes monetary penalty on DCB Bank Limited- (Reserve Bank of India) (28 Oct 2020)

MANU/RPRL/0158/2020

Banking

The Reserve Bank of India (RBI) has, by an order dated October 28, 2020, imposed a monetary penalty of Rs. 22 lakh (Rupees Twenty Two lakh only) on DCB Bank Ltd. (the bank) for non-compliance with certain provisions of directions issued by RBI contained in the circular on "Marketing/distribution of mutual fund/insurance etc., products by banks" dated November 16, 2009.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. 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

An off-site examination of the records pertaining to the para-banking activity of the bank was conducted by RBI in a matter related to default on the National Spot Exchange Limited (NSEL). The off-site examination and the related correspondence revealed non-compliance with above-mentioned directions issued by RBI. 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 non-compliance with the directions. After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.

Tags : PENALTY   IMPOSITION   DCB BANK LIMITED  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved