The Reserve Bank of India has imposed a penalty of Rs 5.00 lakh on Solapur Nagari Audyogik Sahakari Bank Niyamit, Solapur, Maharashtra.
The penality came as the cooperative bank violated the instructions on investment in government securities and violation of supervisory action imposed on the bank by the RBI.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted written reply.
After considering the fact of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.
The RBI in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, took the decision.