The Reserve Bank of India has imposed a monetary penalty of Rs 1.50 lakh on The Vaidyanath Urban Co-operative Bank Ltd., Beed (Maharashtra).
The UCB was fined for non-adherence and violation of specific directions issued to the bank by the RBI under Supervisory Action Framework (SAF) under section 36 (1) read with section 56 of the Banking Regulation Act, 1949 (the Act).
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 inspection report of the bank revealed that the bank had made a donation in violation of the Operational Instructions issued by the RBI under SAF.