The Reserve Bank of India has imposed a monetary penalty Rs Twenty-Five Lakh on the Haryana State Co-operative Apex Bank Limited, Chandigarh for non-compliance with RBI directions on Housing Finance.
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 statutory inspection of the bank conducted by NABARD with reference to the bank’s financial position revealed non-compliance with the RBI directions pertaining to the maximum limit on the quantum of housing loan that can be granted to an individual borrower.
In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of/non-compliance with RBI directions, as stated therein.
After considering the bank’s reply to the notice, the additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions.