NCLT Kochi: Liability of Personal Guarantor Cannot Exceed Contractual Limit  ||  NCLT Ahmedabad: Must Determine Related Party Status When Insolvency Proceedings Commence  ||  Ker. HC: 'Immediate Official Superior' under NDPS Act must be Interpreted in Relation to the Context  ||  J&K HC: In Cases Involving Narco-Terror Links, Cannot Grant Bail Merely Due to Delay in Trial  ||  J&K HC: Civil Courts Can Hear Waqf Disputes if Waqf Tribunal Does Not Exist  ||  J&K HC: Can’t Invoke Principle of ‘No Work, No Pay’ When Termination is Illegal  ||  Rajasthan HC: Should Not Penalize Party Due to Negligence of Legal Counsel  ||  Delhi High Court Passes John Doe Order Restraining Infringement of ‘Tata’ Trademarks  ||  Delhi HC: Dealing in Crypto Currency Has Profound Implications on Economy of the Country  ||  SC: If Citizens Want to Enjoy Fundamental Right it Should be With Reasonable Restrictions    

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 2025 - All Rights Reserved