The Reserve Bank of India on Monday illustrated it has assessed a monetary penalty for rule-breaking operations.
Hissar Urban Cooperative Bank Ltd has been fined Rs 3 Lakhs and Andaman and Nicobar State Co-operative Bank Ltd has been fined Rs 5 Lakh for violation of banking norms.
The RBI has assessed the monetary penalty through an order dated September 23, 2022. Hissar Urban Cooperative Bank Ltd, Hisar has been penalised for “contravention of Section 35A and section 36 (1) read with Section 56 of the Banking Regulation Act, 1949.”
This penalty has been imposed in the practice of powers vested in RBI under the requirements of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, the RBI said.
The RBI declared it has issued an order in this respect dated September 22, 2022. Andaman & Nicobar State Co-operative Bank Ltd has been penalised for contravention of/non-compliance with the provisions of Section 20 read with Section 56 of BR Act, 1949 (AACS).
This penalty has been imposed in the exercise of powers vested in 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 RBI.
“This litigation is based on drawbacks in regulatory obedience and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers“, RBI said in a declaration.
