RBI imposed a fine of Rs 1 crore on this bank
The Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 1 crore on co-operative Rabobank UA for deficiencies in regulatory compliance. The penalty has been imposed for contravention of certain provisions of the Banking Regulation Act, 1949 and directions relating to ‘Transfer of Reserve Funds’.
RBI said that it has conducted a statutory oversight for Supervisory Appraisal (ISE) of the bank with reference to the financial position of the bank as on March 31, 2020.
Scrutiny of the Risk Assessment Report relating to the same revealed violation of the provisions of the Banking Regulation Act and the directions issued by RBI. A show cause notice has been issued to the bank.
“After considering the bank’s reply to the notice, examining the oral submissions made during the personal hearing and additional submissions made by the bank, RBI came to the conclusion that the allegation of contravention of the provisions of the Act and directions of the RBI was was confirmed and warrants imposition of monetary penalty on the bank,” RBI said in a statement.
In another statement, RBI said that a penalty of Rs 5 lakh has been imposed on Village Financial Services Limited, Kolkata for non-compliance of certain provisions of the Know Your Customer Guidelines, 2016.
However, the central bank said 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 banks with their customers.
On Wednesday, the RBI imposed penalties on two co-operative banks for lapses in regulatory compliance.
It imposed a fine of Rs 13 lakh on Ahmednagar Merchant’s Co-operative Bank, Ahmednagar, Maharashtra and Rs 2 lakh on Mahila Vikas Sahakari Bank, Ahmedabad, Gujarat.
Read also: RBI to impose monetary penalty on ATMs running out of cash for more than 10 hours
.