The Reserve Bank of India has imposed a monetary penalty of ₹ 5.00 lakh (₹ Five lakh only) on the The Rajsamand Urban Co-operative Bank Limited, Rajsamand, in exercise of powers vested in it under the provisions of Section 47 A (1) (c) read with 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for violation of RBI instructions / guidelines relating to (i) linking of share capital to borrowings (ii) breach of prescribed individual borrower exposure limit (iii) granted unsecured loans beyond prescribed limit and allowed frequent OD in a CC account beyond prescribed limit (iv) acquisition of non-banking asset. The Reserve Bank of India had issued a show cause notice to the bank based on the findings of the inspection of the bank, in response to which the bank submitted a written reply and also made personal submission before the Executive Director of RBI. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the monetary penalty. Ajit Prasad
Assistant Adviser Press Release: 2016-2017/2328 | |