Bombay HC: Clarifies Procedure for Executing Foreign Decrees  ||  Supreme Court: Bureaucratic Delay No Excuse  ||  Supreme Court Grants Full Disability Pension Arrears to Veterans  ||  Delhi HC: Workman Cannot Claim Section 17(B) of the ID Act Wages after Reaching Superannuation Age  ||  Allahabad HC: Caste by Birth Remains Unchanged Despite Conversion or Inter-Caste Marriage  ||  Delhi High Court: Tweeting Corruption Allegations Against Employer Can Constitute Misconduct  ||  Delhi High Court: State Gratuity Authorities Lack Jurisdiction over Multi-State Establishments  ||  Kerala High Court: Arrest Grounds Need Not Mention Contraband Quantity When No Seizure is Made  ||  SC: Silence During Investigation Does Not Ipso Facto Mean Non-Cooperation to Deny Bail  ||  Supreme Court: High Courts Cannot Re-Examine Answer Keys Even in Judicial Service Exams    

RBI imposes monetary penalty on The Bharat Co-operative Bank Limited, Bengaluru, Karnataka- (Reserve Bank of India) (05 Dec 2022)

MANU/RPRL/0561/2022

Banking

The Reserve Bank of India (RBI) has imposed, by an order dated November 28, 2022, a monetary penalty of ₹ 5.00 lakh (Rupees Five lakh only) on The Bharat Co-operative Bank Limited, Bengaluru, Karnataka (the bank) for non-adherence / violation of directions issued under Exposure Norms and Statutory / Other Restrictions - UCBs. 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 (AACS), 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 inspection reports of the bank based on its financial position as on March 31, 2020 and March 31, 2021, revealed, inter alia, that the bank's investment in commercial paper breached the prudential individual exposure limit of 15% of capital funds. 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 non-compliance with the directions.

After considering the bank's reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.

Tags : PENALTY   IMPOSITION   NON-COMPLIANCE  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved