The Reserve Bank of India has imposed a monetary penalty of on the United India Co-operative Bank Limited, Nagina. This penalty has been imposed due to the failure of the bank to adhere to the directions issued by RBI.
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.
RBI had through various emails and letters, advised the bank to submit various returns to RBI. However, the bank failed to submit the returns within the time limit stipulated. Based on the same a show cause 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.
After considering the bank’s reply, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.
