Latest News | RBI Imposes Rs 1 Lakh Penalty on Priyadarshini Mahila Nagari Sahakari Bank

Mumbai, May 18 (PTI) The Reserve Bank of India has imposed a penalty of Rs 1 lakh on Priyadarshini Mahila Nagari Sahakari Bank, Beed (Maharashtra) for violation of certain directions under the Supervisory Action Framework.

The inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, non-adherence/ violation of specific directions issued to the bank by the RBI under SAF, the central bank said in a release.

Subsequently, a notice was issued to the bank, advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions.

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

It, however, added 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)