RBI imposes monetary penalty on Porbandar Commercial Co-operative Bank
RBI imposed Rs 1 lakh monetary penalty on Porbandar Commercial Co-operative Bank Ltd.
September 21, 2021 / 06:57 PM IST
The Reserve Bank of India on September 21 imposed a monetary penalty of Rs 1 lakh on Gujarat-based Porbandar Commercial Co-operative Bank Ltd over contravention of directions issued by the RBI on ‘Loans and advances to directors, relatives and firms /concerns in which they are interested’, the central bank said in a release.
The RBI had conducted a statutory inspection of the bank's financial position as on March 31, 2019, and the inspection report revealed non-compliance of aforesaid directions issued by the RBI.
Subsequently, the central bank issued a notice advising the cooperative bank to show cause as to why the penalty should not be imposed for non-compliance. Post considering the bank's reply, the RBI came to the conclusion that the charge was substantiated and warrants imposition of monetary penalty, the central bank said.