PIL Seeking ‘Authoritative Interpretation’ of Section 66 PMLA Refused by Delhi High Court  ||  All. HC: Can’t Declare Transaction Benami on Contractor’s Statement Without Relevant Material  ||  Del. HC: Denying ITC to Taxpayers One of the Outcomes of GST Registration Cancell. with Retrospect  ||  Cal HC: Penalty Amount on Higher Value than Invoice Value Can’t be Computed by GST Dep. w/o Evidence  ||  All. HC: Candidates with Criminal Background Will Pose Severe Threat to Democracy if Elected  ||  All. HC: It’s an Obligation of Bank Officials to Fully Co-operate in Criminal Investigations  ||  SC: Prima Facie Case Made Out from Allegations in Complaint Sufficient to Summon Accused  ||  Supreme Court Explains: Debt Becoming Financial & Operational Debt  ||  P&H HC: Model Code of Conduct Can’t Stand in Way of Execution of Judicial Order  ||  Chh. HC: Can’t Build Matrimonial Home With Bricks & Stones, Love & Respect Between Spouses Required    

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 2024 - All Rights Reserved