The Reserve Bank of India (RBI) on Tuesday imposed a penalty of Rs 2 lakh on Dhrangadhra People’s Co-operative Bank, Surendranagar, Gujarat, for non-compliance with sure norms. The RBI stated the penalty has been imposed for non-compliance with RBI instructions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Depositor Education and Awareness Fund Scheme 2014’.
Giving particulars, the RBI stated the statutory inspection of the bank carried out by it as regards to the bank’s monetary place as on March 31, 2018, and the inspection report thereto, revealed, inter alia, non-compliance with the instructions.
Subsequently, a discover was issued to the Dhrangadhra People’s Co-operative Bank.
“After contemplating the bank’s reply to the discover and oral submissions made in the course of the private listening to, the RBI got here to the conclusion that the aforesaid fees had been substantiated and warranted imposition of financial penalty,” the RBI stated.
The central bank added that the penalty is predicated on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the bank with its prospects.
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