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RBI imposes monetary penalty on The Bihar State Co-operative Bank

The violations pertain to the circular on “Review of Frauds - Guidelines on Monitoring and Reporting System,” the RBI said.

August 31, 2021 / 05:52 PM IST
Representative image

Representative image

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs Five Lakh on The Bihar State Co-operative Bank of Patna for non-compliance with the directions issued by the National Bank for Agriculture and Rural Development (NABARD), the RBI said in a release.

The violations pertain to the circular on “Review of Frauds - Guidelines on Monitoring and Reporting System,” the RBI said.

The central bank’s 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 RBI said.

The statutory inspection of the bank conducted by NABARD with reference to the bank’s financial position as on March 31, 2018 and March 31, 2019 revealed non-compliance with aforesaid directions issued by NABARD.

In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the aforesaid directions.

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After considering the bank’s reply to the notice and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charge was substantiated and warranted imposition of monetary penalty, the central bank said.
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Tags: #RBI
first published: Aug 31, 2021 05:45 pm
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