RBI slaps Rs 30 lakh fine on Pune-based Janata Sahakari Bank
The Reserve Bank of India (RBI) has imposed a fine of Rs 30 lakh on Janata Sahakari Bank Limited, Pune for non-compliance of certain instructions. The penalty has been imposed for non-compliance of specific directions issued by RBI under the Supervisory Action Framework (SAF) and RBI’s directions on ‘Frauds in UCBs: Changes in Monitoring and Reporting Mechanism’.
Scrutiny of the statutory inspection, inspection reports and all related correspondence with regard to the financial position of the Bank as on March 31, 2019, revealed that the Bank had not complied with the instructions on exposure to sensitive areas (real estate). and classification and reporting of frauds, RBI said.
RBI, however, said the penalty is based on lack of regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the bank with its customers.
(with PTI input)
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