The Reserve Bank of India has imposed a monetary penalty of Rs ten lakh on the Prathamik Shikshak Sahakari Bank based in Kolhapur (Salary Earners’ Bank), in exercise of the powers vested in it.
The UCB was penalized for for violation of operational instructions relating to declaration and payment of dividend for the financial year 2013-14 without prior permission of the Reserve Bank of India.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank had submitted a written reply.
After considering the facts of the case and bank’s reply in the matter, the Reserve Bank has come to the conclusion that the violation(s) was/ were substantial and warranted imposition of the penalty.
