RBI imposed Monetary Penalty on Co-operative Bank; Check Name of Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.3.00 lakh (Rupees Three Lakh only) on The Parwanoo Urban Co-operative Bank Limited, Parwanoo, Himachal Pradesh (the bank) for contravention of section 35A and section 36 (1) (a) read with section 56 of the Banking Regulation Act, 1949 as the bank failed to comply with specific directions issued to it by RBI under Supervisory Action Framework (SAF), by an order dated November 15, 2022.

This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

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.

Background

According to the bank’s financial situation as of March 31, 2021, the Inspection Report and Risk Assessment Report indicated, among other things, non-compliance with particular directives given to the bank by RBI under the Supervisory Action Framework (SAF). Based on this, a notice was sent to the bank asking it to provide justification for not imposing a fine for failing to follow the stated instructions.

The RBI determined that the aforementioned charge of non-compliance with RBI directions was proved and called for the imposition of a monetary penalty after taking into account the bank’s response to the notice and the representations made during the personal hearing.