RBI imposed Monetary Penalty on Kohinoor Sahakari Bank; Know Reason:

RBI imposed Monetary Penalty on Kohinoor Sahakari Bank; Know Reason The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.1.00 lakh (Rupees One lakh only) on Kohinoor Sahakari Bank Ltd., Ichalkaranji (the bank) for non-compliance with the directions issued by RBI on ‘Investments by Primary (Urban) Co-operative Banks’, by an order dated May 23, 2023. This penalty was levied in accordance with the powers granted to the RBI by sections 47 A (1) (c), 46 (4) (i), and 56 of the Banking Regulation Act of 1949 (BR Act). This action is based on the 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. The RBI's statutory inspection of the bank, based on its financial position as of March 31, 2022, and examination of the Risk Assessment Report and all related correspondence, revealed that the bank had failed to adhere to (i) prudential inter-bank gross exposure limit and (ii) inter-bank counter party limit. In addition, a notice was sent to the bank instructing it to show cause why a penalty should not be levied for violating the RBI guidelines, as indicated therein. After reviewing the bank's response to the notice, the RBI concluded that the allegation of non-compliance with the aforementioned RBI directives was proved and merited imposition of monetary penalty, to the extent of such non-compliance.