Latest News | RBI Withdraws Restrictions on Hindu Cooperative Bank, Pathankot

Mumbai, Oct 14 (PTI) The RBI on Thursday withdrew all restrictions imposed on Hindu Cooperative Bank Limited, Pathankot.

The Reserve Bank had issued directions stipulating certain restrictions on the bank in March 2019. The directions were modified from time to time and were last extended up to October 24, 2021.

Also Read | Samsung Galaxy A52s 5G Awesome Mint Colour Variant Launched in India.

"The Reserve Bank of India on being satisfied that in the public interest it is necessary to do so...hereby, withdraws with effect from close of business on October 14, 2021, the said directions so issued to Hindu Cooperative Bank Limited, Pathankot, Punjab," it said in a statement.

In another release, the RBI said it has imposed a penalty of Rs 1 lakh on KNS Bank, The Kurla Nagarik Sahakari Bank Ltd, Mumbai for contravention certain norms related to Depositor Education and Awareness Fund Scheme, 2014.

Also Read | Sensex Zooms 569 Points to Fresh Record; Nifty Tops 18,300 Mark.

The RBI said the inspection report of the bank based on its financial position as on March 31, 2020, revealed, inter alia, that the bank had not transferred balances, in certain accounts which were unclaimed for more than ten years to Depositor Education and Awareness Fund.

The RBI, 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)