The Reserve Bank of India (RBI) has imposed a fine of Rs 15 lakh on Himachal’s Solan-based Bhagat Urban Co-operative Bank for violating certain norms, including norms related to NPA classification.
RBI said in a statement that it has imposed a fine of Rs 1 lakh on New Delhi-based Delhi Nagrik Sahakari Bank Limited for non-compliance of certain directions issued by the central bank. RBI said that the inspection report of Bhagat Urban Co-operative Bank, based on its financial position as on March 31, 2019, revealed non-adherence to or violation of directions including non-identification of NPAs, misclassification of assets, inadequate provisions.
After this, notice was issued to the co-operative bank asking why penalty should not be imposed for violation of the above instructions. The penalty was imposed after considering the reply and oral submissions of the cooperative bank. RBI said that the inspection report of Delhi Nagrik Sahakari Bank revealed non-adherence to prudential inter-bank (gross) exposure limits. The central bank said the penalty imposed in both the cases is based on deficiencies in regulatory compliance and is not related to any transaction done with customers.
Earlier, the RBI had imposed a fine of Rs 27.5 lakh on Dhanlaxmi Bank for violation of rules related to Depositors’ Education and Awareness Fund scheme. At the same time, Gorakhpur-based multi-state primary cooperative bank of Northeast (NE) and Middle Eastern (EC) railway employees was fined Rs 20 lakh for violating certain norms. In a statement, RBI said that Dhanlaxmi Bank has been fined for contravention of a section of the Banking Regulation Act, 1949.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
