India News | RBI Slaps Rs 20 Lakh Penalty on NE & EC Railway Employees' Multi-State Primary Co-op Bank

Mumbai, Aug 23 (PTI) The RBl on Monday said it has imposed a penalty of Rs 20 lakh on the NE & EC Railway Employees' Multi-State Primary Co-operative Bank, Gorakhpur for contravention of certain norms.

In a statement, the RBI said the inspection report of the bank based on its financial position as on March 31, 2019 revealed non-adherence/violation of specific directions issued to it under the Supervisory Action Framework (SAF).

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Based on the report, a show cause notice was issued.

"After considering the bank's reply and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-adherence/violation of RBI directions was substantiated and warranted imposition of monetary penalty," the central bank said.

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It, however, added that the penalty 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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)