RBI imposes Rs 5 lakh penalty on Uttarakhand Gramin Bank, Dehradun

by Psu Connect
Date: 09-04-24

According to central bank authority, 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.

RBI imposes Rs 5 lakh penalty on Uttarakhand Gramin Bank, Dehradun

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.00 lakh on The Uttarakhand Gramin Bank, Dehradun for contravention of the provisions of section 26 A (2) read with section 51 of the Banking Regulation Act, 1949 (BR Act).

This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46 (4)(i) and 51 of the BR Act.

The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2023.

Based on supervisory findings of non-compliance with statutory provisions, it was provisionally alleged that the bank had transferred the eligible unclaimed amount to the Depositor Education and Awareness Fund with delay, warranting imposition of monetary penalty.

According to central bank authority, 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.