RBI imposes monetary penalty on The Ahmedabad Mercantile Co-operative Bank Ltd., Ahmedabad, Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad, Saraswat Co-operative Bank Ltd., Mumbai, and SVC Co-operative Bank Ltd., Mumbai. Text of the relevant press Releases are as follows:-

Reserve Bank of India

RBI imposes monetary penalty on The Ahmedabad Mercantile Co-operative Bank Ltd., Ahmedabad

Press Release: 2021-2022/446

Date : Jun 29, 2021

The Reserve Bank of India (RBI) has, by an order dated June 28, 2021, imposed a monetary penalty of ₹62.50 lakh (Rupees sixty-two lakh and fifty thousand only) on The Ahmedabad Mercantile Co-operative Bank Ltd., Ahmedabad (the bank) for non-compliance with directions issued by RBI contained in Master Directions on ‘Interest Rate on Deposits’. This penalty has been imposed in exercise of powers vested in RBI under section 47A(1)(c) read with sections 46(4)(i) and 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.

Background

The statutory inspection of the bank conducted by the RBI with reference to the bank’s financial position as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all related correspondence revealed, inter alia, non-compliance with aforesaid directions issued by RBI. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the directions issued by RBI. After considering the bank’s reply to the notice, oral submissions made in the personal hearings and additional submissions, RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)
Chief General Manager

*****

RBI imposes monetary penalty on Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad

Press Release: 2021-2022/445

Date : Jun 29, 2021

The Reserve Bank of India (RBI) has, by an order dated June 28, 2021, imposed a monetary penalty of ₹112.50 lakh (Rupees one crore twelve lakh and fifty thousand only) on Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad (the bank) for non-compliance with directions issued by RBI contained in Master Directions on ‘Interest Rate on Deposits and ‘Know Your Customer’. This penalty has been imposed in exercise of powers vested in RBI under section 47A(1)(c) read with sections 46(4)(i) and 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.

Background

The statutory inspection of the bank conducted by the RBI with reference to the bank’s financial position as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all related correspondence revealed, inter alia, non-compliance with aforesaid directions issued by RBI. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the directions issued by RBI. After considering the bank’s reply to the notice, oral submissions made in the personal hearing and additional submissions, RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)
Chief General Manager

*****

RBI imposes monetary penalty on Saraswat Co-operative Bank Ltd., Mumbai

Press Release: 2021-2022/443

Date : Jun 29, 2021

The Reserve Bank of India (RBI) has, by an order dated June 28, 2021, imposed a monetary penalty of ₹25 lakh (Rupees twenty-five lakh only) on Saraswat Co-operative Bank Ltd., Mumbai (the bank) for non-compliance with directions issued by RBI contained in Master Directions on ‘Interest Rate on Deposits and Master Circular on ‘Maintenance of Deposit Accounts’. This penalty has been imposed in exercise of powers vested in RBI under section 47A(1)(c) read with sections 46(4)(i) and 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.

Background

The statutory inspection of the bank conducted by the RBI with reference to the bank’s financial position as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all related correspondence revealed, inter alia, non-compliance with aforesaid directions issued by RBI. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the directions issued by RBI. After considering the bank’s reply to the notice, oral submissions made in the personal hearings and additional submissions, RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)
Chief General Manager

*****

RBI imposes monetary penalty on SVC Co-operative Bank Ltd., Mumbai

Press Release: 2021-2022/444

Date : Jun 29, 2021

The Reserve Bank of India (RBI) has, by an order dated June 28, 2021, imposed a monetary penalty of ₹37.50 lakh (Rupees thirty-seven lakh and fifty thousand only) on SVC Co-operative Bank Ltd., Mumbai (the bank) for non-compliance with directions issued by RBI contained in Master Directions on ‘Interest Rate on Deposits and Circular on ‘Frauds Monitoring and Reporting Mechanism’. This penalty has been imposed in exercise of powers vested in RBI under section 47A(1)(c) read with sections 46(4)(i) and 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.

Background

The statutory inspection of the bank conducted by the RBI with reference to the bank’s financial position as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all related correspondence revealed, inter alia, non-compliance with aforesaid directions issued by RBI. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the directions issued by RBI. After considering the bank’s reply to the notice, oral submissions made in the personal hearings and additional submissions, RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)
Chief General Manager

More Under Fema / RBI

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031