The Reserve Bank of India has imposed a monetary penalty of ?10 lakh on the Karad Urban Co-operative Bank for contravention of certain directions issued by RBI under the Supervisory Action Framework.
The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI, reads a release from the regulator.
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, the release clarifies.