RBI has imposed a monetary penalty of Rs 2.00 lakh on The Bank Employees’ Co-operative Bank Limited, Kolkata (West Bengal). The UCB was found guilty of contravention of the Directions issued by RBI to Urban Cooperative Banks on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.
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.
After considering the bank’s reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.