The Reserve Bank of India has imposed a monetary penalty of Rs two lakh on Balasinor Nagarik Sahakari Bank Ltd., Balasinor, Dist. Mahisagar (Gujarat), in exercise of the powers vested in it.
The UCB was faulted violations pertaining to non-compliance with operational instructions imposed by RBI u/s 36 (1) of the B R Act, 1949 (AACS).
It also exceeded prescribed individual borrower exposure limit and sanctioned loans on bullet repayment basis against gold/silver ornaments beyond the prescribed ceiling.
There are also instances of violations in the Do’s and Don’ts prescribed for directors; and non-compliance with UCIC related guidelines.
The Reserve Bank of India had issued a Show Cause Notice to the bank in response to which the bank submitted a written reply. After considering the facts of the case, the bank’s reply and the personal submissions made in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the penalty.
