The Reserve Bank of India has imposed a monetary penalty of Rs 40 Lac on Himachal Pradesh State Co-operative Bank for non-compliance with regulatory directions issued by NABARD contained in “Review of Frauds – Guidelines on Monitoring and Reporting System”.
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 in a press release.
The statutory inspection of the bank conducted by the NABARD IN 2019 revealed non-compliance with directions. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why the penalty should not be imposed.
After considering the bank’s reply to the notice and oral submissions made in the personal hearing, RBI concluded that the aforesaid charge was substantiated and warranted imposition of monetary penalty.