The Reserve Bank of India (RBI) has imposed a fine of Rs 27.5 lakh on Dhanlaxmi Bank for violating rules related to Depositors’ Education and Awareness Fund scheme.
At the same time, Gorakhpur-based multi-state primary cooperative bank of Northeast (NE) and Middle Eastern (EC) railway employees has been fined Rs 20 lakh for violating certain norms. In a statement, RBI said that Dhanlaxmi Bank has been fined for contravention of a section of the Banking Regulation Act, 1949.
Gorakhpur-based bank also
fined have put. RBI said in a statement that the inspection report of the bank based on the financial position of the bank as on March 31, 2019, revealed non-compliance or contravention of specific instructions issued under the Supervisory Action Framework (SAF).
RBI’s instructions not followed
Based on the report, a show cause notice was issued to the cooperative bank. “The RBI, after considering the bank’s reply and oral submissions during the personal hearing, came to the conclusion that the above allegation of non-compliance or violation of its directions was substantiated and, therefore, warranted imposition of monetary penalty,” the central bank said. RBI, however, added that the penalty is based on deficiencies in regulatory compliance and does not cast any question on the validity of any transaction or agreement entered into by the co-operative bank with its customers.
