RBI hits penalty on BHEL Employees’ Co-operative Bank
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Sections 47, 46, and 56, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.
New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 10 lakh (Rupees Ten lakh only) on Bharat Heavy Electricals Employees’ Co-operative Bank Limited, Kailasapuram, Tiruchirappalli, Tamil Nadu by an order dated August 22, 2022 for non-adherence/violation of directions issued under Exposure Norms and Statutory/Other Restrictions – UCBs.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Sections 47, 46, and 56, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.
In a release, RBI mentioned, "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."
Backdrop
The inspection report of the bank based on its financial position as on March 31, 2020, revealed inter alia, violation/non-compliance with directions issued under Exposure Norms and Statutory/Other Restrictions – UCBs. Based on the same a 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 reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.
Read Also : NMDC unveils Ex-Employee portal 'Samman'News Must Read
- Shri. Bikram Ghosh takes charge as Director (Finance) in WCL
- SBI to change debit cards maintenance normal from 1 April, 2024
- NMDC excels at Governance Now 10th PSU Awards
- NTPC Group ties up JPY 30 billion funding from JBIC
- Jabalpur Airport connects Madhya Pradesh to other cities
- Best Organisations for Women title to PowerGrid
- Air India Faces Heavy Fine from DGCA of Rs 80 Lakh
- NCL's mega achievement; surpasses 500 Million Cubic Meters of Overburden
- RailTel bags major order from CDAC worth Rs 36 crore
- ICRA withdraws long term rating of NCDs of ONGC