RBI imposes monetary penalty on Telangana State Cooperative Apex Bank Limited, Hyderabad- (Reserve Bank of India) (12 Jun 2023)
MANU/RPRL/0336/2023
Banking
The Reserve Bank of India (RBI) has, by an order dated June 05, 2023, imposed a monetary penalty of Rs 2.00 lakh (Rupees Two Lakh only) on Telangana State Cooperative Apex Bank Limited, Hyderabad (the bank), for contravention of the provisions of section 26A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under section 47A (1) (c) read with sections 46 (4) (i) and 56 of the BR Act.
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 statutory inspection of the bank conducted by NABARD with reference to the bank's financial position as on March 31, 2020, and examination of the Inspection Report and all related correspondence pertaining to the same revealed, inter alia, that the bank failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. 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 on it for failure to comply with the provisions of the statute and the directions issued thereunder, as stated therein.
After considering the bank's reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of contravention of the aforesaid statutory provision was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such provision.
Tags : PENALTY IMPOSITION NON-COMPLIANCE
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