BackRBI fines Pudukkottai Co-operative Town Bank for non-compliance of guidelines
The Reserve Bank of India (RBI) has imposed a penalty of ₹25,000 on Pudukkottai Co-operative Town Bank Ltd for non-compliance of directions issued on 'Board of Directors - UCBs'.
PremiumThe Reserve Bank of India (RBI) imposed a penalty of ₹25,000 on Pudukkottai Co-operative Town Bank Ltd for non-compliance of the directions issued on ‘Board of Directors - UCBs’.
“The Reserve Bank of India (RBI) has, by an order dated October 12, 2023, imposed a monetary penalty of ₹25,000 on The Pudukkottai Co-operative Town Bank Ltd., Pudukkottai, Tamil Nadu (the bank). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949 (AACS)," said RBI in its notice released on Monday.
Also Read: RBI imposes monetary penalty on State Bank of India, Indian Bank, Punjab & Sind Bank
The Co-operative bank has been fined for extending loans to its directors. On the bank's failure to comply with RBI guidelines, the central bank has issued a notice to Pudukkottai Co-operative Town Bank to show cause as to why a penalty should not be imposed on it.
After hearing the bank's reply to the notice and its oral submissions, the RBI concluded that the cooperative bank was guilty of violating rules and the mentioned directions issued by RBI were substantiated and warranted the imposition of monetary penalty on the bank.
Later in the day, two more financial institutions were fined for non-compliance with regulations, according to RBI notices released on Monday.
Also Read: RBI imposes monetary penalty on four co-operative banks. Details here
Kolkata-based Sappers Finance and Consultancy Pvt Ltd. was fined ₹1.50 lakh by the RBI for violating rules related to the acquisition/transfer of control of NBFC.
“The Reserve Bank of India (RBI) has, by an order dated November 02, 2023, imposed a monetary penalty of ₹1.50 lakh (Rupees One lakh fifty thousand only) o Sappers Finance and Consultancy Pvt Ltd., Kolkata (the company) for non-compliance with the directions issued by RBI on (i) ‘Requirement for obtaining prior approval of RBI in cases of acquisition/transfer of control of Non-Banking Financial Companies (NBFCs)’; and (ii) ‘Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016," read an RBI notice.
In another notice, the RBI announced a penalty of ₹2 lakh to Sangli Sahakari Bank Limited, Mumbai for violating rules laid out by the central bank related to the ‘Board of Directors-UCBs’.
“The Reserve Bank of India (RBI), by an order dated September 15, 2023, has imposed a monetary penalty of ₹2.00 lakh (Rupees Two lakh only) on Sangli Sahakari Bank Limited, Mumbai (the bank) for non-compliance with the directions issued by RBI on ‘Board of Directors-UCBs," stated RBI in its notice issued on Monday.
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