RBI imposed penalty of 1 Lakh on Noida Commercial Co-operative Bank

News Delhi: The Reserve Bank of India has imposed a monetary penalty of Rs 1 lakh on the Noida Commercial Co-operative Bank Ltd., Ghaziabad (the bank) by an order dated May 04, 2022 for contravention of Section 35A and section 36 (1) read with Section 56 of the Banking Regulation Act, 1949. 

The regulatory body has imposed the penalty in the 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.

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.

It is mentioned that the bank had failed to adhere to the RBI directions prohibiting payment of dividends by the bank when it had paid unclaimed dividends of prior periods. Based on the same, a Notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for contravention of the specific directions issued by RBI, said central bank in a press release.