'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 RBI said
The Reserve Bank of India (RBl) has imposed, a monetary penalty of ₹2.00 lakh on Dhrangadhra People’s Co-operative Bank, Dhrangadhra, district, Surendranagar, Gujarat (the bank) for non-compliance with RBI directions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Depositor Education and Awareness Fund Scheme, 2014’.
"This penalty has been imposed in exercise of powers vested in the RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by the RBI," the central bank said in a statement.
"This action 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," RBI further said in the statement.
The statutory inspection of the bank conducted by the RBI with reference to the bank’s financial position as on March 31, 2018 and the Inspection Report thereto, revealed, inter alia, non-compliance with the aforesaid directions issued by the RBI. In furtherance of the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the aforesaid directions issued by the RBI. After considering the bank’s reply to the Notice and oral submissions made during the personal hearing, the RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty.