The Reserve Bank of India has imposed a monetary penalty of Rs 2.50 lakh on Bilaspur Nagrik Sahakari Bank Ltd Bilaspur, Chhattisgarh for contravention of Directions issued by RBI to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs.
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.
The inspection report of the bank based on its financial position as on March 31, 2020, revealed, inter alia, that the bank had not adhered to prudential inter-bank (Gross) exposure limit and not complied with directions.
After considering the bank’s replies and oral submissions made during personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.