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  ||  SC: Central Government Employees under CCS Rules are Not Covered by the Payment of Gratuity Act  ||  Supreme Court Holds CrPC Principles on Discharge and Framing of Charges Continue under BNSS  ||  Supreme Court: High Courts Must Independently Assess SC/ST Act Charges in Section 14A Appeals    

Imposition of penalty on Kohinoor Sahakari Bank Ltd., Ichalkaranji- (Reserve Bank of India) (29 May 2023)

MANU/RPRL/0307/2023

Banking

The Reserve Bank of India (RBI) has, by an order dated May 23, 2023, imposed a monetary penalty of ₹1.00 lakh (Rupees One lakh only) on Kohinoor Sahakari Bank Ltd., Ichalkaranji (the bank) for non-compliance with the directions issued by RBI on 'Investments by Primary (Urban) Co-operative Banks'. This penalty has been imposed in exercise of powers vested in RBI conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of Banking Regulation Act, 1949 (BR Act).

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

The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2022, and examination of the Risk Assessment Report and all related correspondence pertaining to the same, revealed, inter alia, that the bank had failed to adhere to (i) prudential inter-bank gross exposure limit and (ii) inter-bank counter party limit. 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 for contravention of the RBI directions, as stated therein.

After considering the bank's reply to the notice, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions.

Tags : IMPOSITION   PENALTY   NON-COMPLIANCE  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved