On Thursday, the Reserve Bank of India (RBI) imposed a monetary penalty of Rs 3.00 lakh on Ordnance Equipment Factory Prarambhik Sahkari Bank Ltd., Kanpur for non-compliance with specific directions issued by RBI under Supervisory Action Framework (SAF).
This penalty has been imposed in exercise of powers vested in 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, says RBI.
The RBI’s press release read, “After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the aforementioned charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty”.