Latest News | RBI Slaps Rs 10.5 Lakh Penalty on Shri Kanyaka Nagari Sahakari Bank, Chandrapur

Mumbai, Nov 17 (PTI) The Reserve Bank of India (RBI) on Wednesday imposed a monetary penalty of Rs 10.50 lakh on Shri Kanyaka Nagari Sahakari Bank Ltd, Chandrapur, for contravention of norms, including on fresh loans to the real estate sector.

The RBI, in a statement, said the inspection report of the bank based on its financial position as on March 31, 2018, and March 31, 2019, revealed that it had given fresh loans to the real estate sector in violation of the operational instructions issued by the RBI and also opened on-site ATMs without the required permission.

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Further, the bank delayed the reporting of frauds on many occasions, and also granted director-related loans in contravention of/ non-compliance of directions.

A show cause notice was issued to it.

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After considering the bank's replies, oral submissions made during the personal hearing and additional submissions made by the bank, the RBI came to the conclusion that the charges of non-compliance with RBI directions were substantiated and warranted the imposition of monetary penalty.

In another statement, the RBI said a penalty of Rs 2.50 lakh has been imposed on The Nizamabad District Co-operative Central Bank Ltd, Nizamabad, Telangana, for non-adherence/ violation of certain directions on the 'Income Recognition, Asset Classification, Provisioning and Other Related Matters — UCBs'.

The RBI, however, added that in both cases, the penalties were based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers. HRS hrs

(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)