NCLAT: Creditors May Choose to Proceed Against One or Multiple Guarantors as They See Fit  ||  NCLAT Delhi: Authority Can Enforce Arbitral Award Via Resolution Professional Under IBC Section 60(5)  ||  Bombay HC Rejects Plea For 'Eco-Friendly' Ganesh Idol Immersion, Upholds Citizens' Right to Clean Wat  ||  Delhi HC:WhistleblowingDoesn’t Grant Employees Immunity from Transfer Orders  ||  Delhi HC: Higher Compounding Fees Don't Apply on Second TDS Default Plea If First Was Rejected  ||  NCLAT Rules Guarantor’s Liability Can Exceed Cap Set in Guarantee Deed on Principal Borrower’s Debt  ||  NEET-UG 2025: Supreme Court Dismisses Plea Claiming OMR Sheet Tampering by Candidate  ||  SC Refuses Interim Bail to Shabir Ahmed Shah; Issues Notice on His Bail Petition  ||  SC Summons MCD Commissioner over Debris at Lodhi-Era Gumti, Asks, "Is There an Ego Issue?"  ||  SC Grants Interim Relief to YSRCP’s Pinnelli Ramakrishna Reddy in Double Murder Case of TDP Activists    

RBI imposes monetary penalty on Shree Co-operative Bank Limited, Vadodara (Gujarat)- (Reserve Bank of India) (21 Aug 2023)

MANU/RPRL/0481/2023

Banking

The Reserve Bank of India (RBI) has imposed, by an Order dated August 11, 2023, a monetary penalty of ₹ 50,000/- (Rupees Fifty Thousand only) on Shree Co-operative Bank Limited, Vadodara, Gujarat (the bank) for non-compliance with direction issued by RBI on 'Loans and advances to directors, relatives, firms/concerns in which they are interested'. This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949.

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 RBI with reference to the bank's financial position as on March 31, 2022, and examination of the Inspection Report, Risk Assessment Report pertaining thereto and all related correspondence pertaining to the same revealed, inter-alia, that the bank had sanctioned loan wherein spouse of one of the bank's directors stood as surety/guarantor. 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 directions 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 aforesaid charge of non-compliance with RBI direction was substantiated and warranted imposition of monetary penalty.

Tags : PENALTY   IMPOSITION   NON-COMPLIANCE  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved