The Reserve Bank of India (RBI) has imposed, by an order dated June 08, 2021, a monetary penalty of ₹2.00 lakh (Rupees two lakh only) on The Dhrangadhra People’s Co-operative Bank Ltd., Dhrangadhra, Dist. Surendranagar, Gujarat (the bank) for non-compliance with RBI directions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Depositor Education and Awareness Fund Scheme, 2014’. This penalty has been imposed in exercise of powers vested in the 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 the 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.
The statutory inspection of the bank conducted by the RBI with reference to the bank’s financial position as on March 31, 2018 and the Inspection Report thereto, revealed, inter alia, non-compliance with the aforesaid directions issued by the RBI. In furtherance of the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the aforesaid directions issued by the RBI. After considering the bank’s reply to the Notice and oral submissions made during the personal hearing, the RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty.
Press Release: 2021-2022/337
CorpArray is a leading Corporate Consulting Service provider, We help our member firm clients, our people, and sections of society to achieve remarkable goals, solve complex problems, or make meaningful progress and create the value they are looking for, by delivering quality in Assurance, and Advisory services. We aim to be the best at all that we do—to help clients realize their ambitions, to make a positive difference in society, and to maximize the success for all whom we deal with
|FEMA||CORPORATE AUDIT||SECURITIES LAWS||CORPORATE LITIGATION|
|SECRETARIAL||INTELLECTUAL PROPERTY RIGHTS||COMPANY/ LLP REGISTRATION||CORPORATE RESTRUCTURING|