The Reserve Bank of India has imposed a monetary penalty of Rs 4 lakh on the Bicholim Urban Co-operative Bank in Goa. The co-op bank has been penalised for non-compliance of RBI directions on exposure norms.
“This penalty has been imposed in 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 (the Act), taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI,” it stated.
The action, the RBI said, is not intended to pronounce upon the validity of any transaction or agreement entered into the bank with its customers.
The RBI imposed the penalty following an inspection report based on its financial position on March 31, 2020. The report found the bank to be non-compliant with RBI directions. It then issued a show cause notice to the bank asking why a penalty should not be imposed.
The apex bank said that the penalty was imposed considering the bank’s written reply and oral submissions made during the personal hearing and subsequent additional submissions. “RBI came to the conclusion that the aforesaid charges of non- compliance with RBI directions was substantiated and warranted imposition of monetary penalty,” it said.
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