The Reserve on Monday imposed a penalty of Rs 2 crore on for breaching deposit, board composition norms. An examination carried out the the RBI confirmed that the personal lender was non-compliant in opening 5 financial savings deposit accounts for a co-operative financial institution.

The Statutory Inspection for Supervisory Evaluation (ISE) of the financial institution was performed by RBI which took into the account the lender’s

monetary place as on March 31, 2019.

“The examination of the Threat Evaluation Report and Inspection Report pertaining to ISE 2019, RBI letter dated October 27, 2020 and associated correspondence within the matter, revealed, contravention of instructions and non-compliance with opening of 5 financial savings deposit accounts within the identify of a co-operative financial institution and failure to adjust to the provisions of part 10A(2)(b) of the Act referring to composition of Board of Directors,” the RBI mentioned in a press release.

The RBI mentioned it had additionally issued a discover to the financial institution asking it to elucidate why a penalty shouldn’t be imposed on it.

“After contemplating the financial institution’s reply to the present trigger discover, oral submissions made throughout the private listening to and examination of extra submissions made by the financial institution, RBI got here to the conclusion that contravention warranted imposition of financial penalty on the financial institution,” the regulator mentioned.

Source link

Leave a Reply