The Reserve Bank of India has imposed a penalty of Rs 3.00 lakh on The Parwanoo Urban Co-operative Bank Limited, Parwanoo, Himachal Pradesh. The UCB was found guilty of contravention of specific directions issued to it by the RBI under Supervisory Action Framework (SAF).
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, clarified the RBI.
The Inspection Report and Risk Assessment Report of the bank based on its financial position as on March 31, 2021, revealed, inter alia, non-compliance with specific directions issued to the bank by RBI under Supervisory Action Framework (SAF). Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the said directions.
After considering the bank’s reply to the notice and submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.