SC: Absence of Independent Witnesses is Not Fatal if Injured Eyewitness Testimony is Sterling  ||  Supreme Court: Prosthetic Limb Costs Must Be Compensated To Restore Victims’ Dignity  ||  Supreme Court: Probate Can be Revoked For Non-Impleadment of Parties and Suppression of Facts  ||  SC: Plaint Cannot be Rejected For Valuation or Court Fee Defects Without Chance to Rectify  ||  SC Rules Government Grants Act Overrides Rent Law, Sets Aside Eviction Proceeding Against Union Govt  ||  SC: Civil Court Has No Jurisdiction in Boundary Dispute Between Maharashtra Panchayat & Municipality  ||  Allahabad HC: Two Criminal Cases Insufficient to Label a Person as 'Goonda' and Harm Reputation  ||  Bom HC: Sprinkling Mustard Without Ill Intent Before a House is Not an Offence under Black Magic Act  ||  J&K&L HC: Preventive Detention Invalid When Based on Speculative Fear of Election Disturbance  ||  Bombay High Court: POSH Act Penalises False Complaints by Women But Not Those Who Instigate Them    

Reserve Bank of India imposes monetary penalty on Gayatri Co-operative Urban Bank Ltd.- (Reserve Bank of India) (10 Jan 2022)

MANU/RPRL/0018/2022

Banking

The Reserve Bank of India (RBI) has imposed, by an order dated January 4, 2022, a monetary penalty of Rs. 1.00 lakh (Rupees one lakh only) on Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana (the bank) for contravention of / non-compliance with provisions of Section 9 read with Section 56 Banking Regulation Act, 1949 (the Act) and certain provisions of the directions issued by RBI contained in the Master Circular on Exposure Norms and Statutory / Other Restrictions - UCBs. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Act taking into account, the failure of the bank to adhere to the aforesaid requirements.

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 Inspection report of the bank based on its financial position as on March 31, 2019 revealed, inter alia contravention of section 9 read with section 56 of the Act by holding non-banking asset beyond the permissible period without approval from RBI and non-compliance with RBI directions prescribing ceiling on sanctioning of unsecured advances to individual borrowers. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contraventions of the statutory provision/non-compliance with RBI directions.

After considering the bank's written reply and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of contravention of the statutory provision/non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty, to the extent of such contravention/non-compliance.

Tags : NON-COMPLIANCE   PENALTY   IMPOSITION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved