RBI Imposes Penalty On Three Co-Operative Banks For Non-Submission Of Their Returns Under Banking Regulation Act
[ By Bobby Anthony ]The Reserve Bank of India has penalized three co-operative banks, namely Nesargi Urban Co-operative Bank Limited, Krishna Pattana Sahakar Bank Niyamitha and Ron Taluka Primary Teachers' Cooperative Credit Bank Limited, for non-submission of returns under Section 27 (2) of the Banking Regulation Act, 1949.Krishna Pattana Sahakar Bank Niyamitha was fined Rs 40,000 while...
The Reserve Bank of India has penalized three co-operative banks, namely Nesargi Urban Co-operative Bank Limited, Krishna Pattana Sahakar Bank Niyamitha and Ron Taluka Primary Teachers' Cooperative Credit Bank Limited, for non-submission of returns under Section 27 (2) of the Banking Regulation Act, 1949.
Krishna Pattana Sahakar Bank Niyamitha was fined Rs 40,000 while Nesargi Urban Co-operative Bank Limited and Ron Taluka Primary Teachers' Co-operative Credit Bank was fined Rs 20,000 each.
The RBI stated that this action was in exercise of powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for non-submission of the returns under Section 27 (2) of the Banking Regulation Act, 1949 (AACS).
The RBI stated that it had issued a show cause notice to the banks, in response to which the banks sought a personal hearing.
“After considering the facts of the case and bank's representation in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of penalty,” according to the RBI.