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    The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on Sarvodaya Commercial Co-operative Bank.

    The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on Sarvodaya Commercial Co-operative Bank. RBI has imposed on 27 July for non-compliance of the bank’s guidelines regarding issuance of loans and advances to directors, relatives and firms/companies.

    RBI said that this penalty was imposed in exercise of the powers vested in the Reserve Bank under the provisions of Section 47A (1) (C) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949. Is. This action is based on regulatory compliance deficiencies and is not meant to question the validity of any transaction or agreement between the Bank and its customers.

    In fact, on March 31, 2018, a statutory inspection of the bank was carried out by the Reserve Bank in the matter of financial position of the bank and the report based on it and examination of all related correspondence, inter alia, revealed that these RBI instructions have not been followed.

    Based on this, a notice was again sent to the bank, asking them to show cause as to why they should not be penalized for not following the directions of RBI. Thereafter, after considering the bank’s reply to the notice, the submissions made during the personal hearing and further submissions, the Reserve Bank came to the conclusion that the allegations of non-compliance with the directions issued by the RBI were proved to be true and it was necessary to impose monetary penalty. .

    Earlier also, the Reserve Bank has imposed a fine of Rs 112.50 lakh on Hyderabad-based Andhra Pradesh Mahesh Sahakari Urban Bank on four co-operative banks for violating regulatory guidelines.

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