RBI imposes monetary penalty on Priyadarshini Mahila Nagari Sahakari Bank for rule violations

Representative image: Reserve Bank of India

The Reserve Bank of India (RBl) on May 18 imposed a monetary penalty of Rs 1 lakh on Priyadarshini Mahila Nagari Sahakari Bank in Maharashtra for violation of certain directions.

The bank has been penalised for non-adherence/ violation of specific directions issued under Supervisory Action Framework (SAF), the RBI said in a release.

"This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI," the RBI said.

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, the RBI said.

The inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, non-adherence/ violation of specific directions issued to the bank by the RBI under Supervisory Action Framework (SAF), the central bank said.

Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions, the RBI said.

"After considering the bank's replies and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty," the RBI said.