The Reserve Bank of India (RBl) has imposed a monetary penalty of Rs1 lakh on Beed, Maharashtra-based Priyadarshini Mahila Nagari Sahakari Bank Ltd, for non-adherence and violation of specific directions issued to the bank under supervisory action framework (SAF).
"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, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI," the banking regulator says in a statement.
"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the central bank added.
The inspection report of the bank based on its financial position as on 31 March 2019, revealed, inter alia, non-adherence or violation of specific directions issued to the bank by the RBI under SAF. Based on the same, a show cause notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.
"After considering the bank's replies and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty," the RBI said.