The Reserve Financial institution had issued instructions stipulating sure restrictions on the financial institution in March 2019. The instructions had been modified once in a while and had been final prolonged as much as October 24, 2021.
“The Reserve Financial institution of India on being happy that within the public curiosity it’s obligatory to take action…hereby, withdraws with impact from shut of enterprise on October 14, 2021, the mentioned instructions so issued to Hindu Cooperative Financial institution Restricted, Pathankot, Punjab,” it mentioned in a press release.
In one other launch, the RBI mentioned it has imposed a penalty of Rs 1 lakh on KNS Financial institution, The Kurla Nagarik Sahakari Financial institution Ltd, Mumbai for contravention sure norms associated to Depositor Schooling and Consciousness Fund Scheme, 2014.
The RBI mentioned the inspection report of the financial institution based mostly on its monetary place as on March 31, 2020, revealed, inter alia, that the financial institution had not transferred balances, in sure accounts which had been unclaimed for greater than ten years to Depositor Schooling and Consciousness Fund.
The RBI, nonetheless, added the penalty relies on deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its clients