The Reserve Bank of India (RBI) has imposed a monetary penalty of ?2.00 lakh on the Krishnanagar City Co-operative Bank for contravention of the directions issued by RBI on “Exposure Norms and 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, reads a RBI release.
The inspection report of the bank is based on its financial position as on March 31, 2019. Based on the same notice a Notice was issued to the bank advising it to show cause as to why the 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 charges of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.