Supreme Court Issues Directions to Speed Up MACT Claims Amid Six-Year Average Pendency  ||  Supreme Court: Sex Selection Practices Continues Due to Preference For Male Children  ||  Supreme Court: Injury From a Fallen Tree is Not a Motor Accident for MACT Claims  ||  Madras HC: Recent Tamil Nadu Elections Reflect Voting Beyond Caste and Community Considerations  ||  Supreme Court: Children Should Not Undergo Psychological Tests in Custody Cases Unless Necessary  ||  Jharkhand HC: Lokayukta Cannot Delegate Core Adjudicatory Powers Even in Case Against Brother  ||  Ker HC: Complainant Can Invoke Presumptions After Proving Transaction, Cheque Execution Convincingly  ||  Supreme Court Cancels SARFAESI Auction Sale After 16 Years Due to a 5-Day Payment Delay  ||  Jhar HC Orders 2-Month Probe Deadline, DGP Monitoring to Overhaul Sexual Violence Response in State  ||  Delhi HC: Social Media Cannot Undermine Judiciary; Intermediaries Must Act Without Court Orders    

RBI imposes monetary penalty on Warud Urban Co-operative Bank Ltd., Warud (Maharashtra)- (Reserve Bank of India) (08 Aug 2022)

MANU/RPRL/0351/2022

Banking

The Reserve Bank of India (RBl) has imposed, by an order dated August 05, 2022, a monetary penalty of Rs. 1.00 lakh (Rupees One lakh only) on Warud Urban Co-operative Bank Ltd., Warud, Maharashtra (the bank) for contravention of/non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions and Know Your Customer (KYC). This 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) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

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 Risk Assessment Report of the bank based on its financial position as on March 31, 2021, revealed, inter alia, that the bank had (i) not complied with the prudential inter-bank counter party limit and (ii) not put in place a robust software for effective identification and reporting of suspicious transactions in contravention of/non-compliance with the directions issued by RBI on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC). Based on 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 replies and oral submissions made during personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty

Tags : PENALTY   IMPOSITION   NON-COMPLIANCE  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved